Kyiv administration looks to buy failing Sich Bank

6 September, 10:23 AM
Bank Sich was declared insolvent at the beginning of August (Photo:Bank Sich via Facebook)

Bank Sich was declared insolvent at the beginning of August (Photo:Bank Sich via Facebook)

The Kyiv municipal government intends to purchase the insolvent Sich Bank and establish a publicly-owned Municipal Bank on its basis, the Kyiv city administration said in a message on its website on Sept. 5.

City officials have applied to participate in the auction for the bank’s assets.

According to the message, the planned Municipal Bank would serve as a “universal financial instrument for the city.”

The would-be publicly owned bank will be useful in dealing with international organizations and foreign investors, deputy head of Kyiv municipal administration Mykola Povoroznyk said.

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Additionally, the Municipal Bank would make it easier to finance the economic renewal of the capital, the message said.

“This is unique opportunity to purchase a functioning bank for a fraction of the cost, by passing a two-year-long process of establishing a new bank,” said Povoroznyk.

“Purchasing and running an existing bank would be cheaper for the city than the sum of fees it has to pay for banking services at the moment.”

The National Bank of Ukraine (NBU) designated Sich Bank as insolvent on Aug. 9, after it failed to meet its credit obligations before the NBU.

Ukraine’s Anti-Trust Committee approved the sale of Sich Bank to Denys Horbunenko – a businessman and associate of Ukrainian oligarch Dmytro Firtash. Horbunenko was previously appointed by the NBU to oversee Sich Bank operations.

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