EQUITY held the Naradcha PRO "DGF VS. BENEFICIAL BUSINESS: SEARCH FOR A "WIN-WIN" FORMULA IN THE BANKING SECTOR"

"A healthy banking system is the one that actively lends to businesses, and not just reports positive balance sheet figures for the few who survived the bank collapse and are now scared to invest in government bonds," said Oleg Malinevsky, summarizing the discussion at the Naradcha PRO "DGF VS BENEFICIAL BUSINESS: SEARCHING FOR A "WIN-WIN FORMULA IN BANKING SECTOR", which took place on November 17.

The purpose of the discussion was, first of all, to find a compromise for investors, the banking system and the Ukrainian state that would be fair from a legal point of view and effective from an economic point of view.

Hanna Yudkivska, Partner at EQUITY, Judge of the European Court of Human Rights (2010-2022), joined the discussion and emphasized that the restriction of access to court and excessive concentration of uncontrolled powers in the Deposit Guarantee Fund contradicts the provisions of the Convention on Human Rights on the peaceful enjoyment of property and the right to a trial by an independent court.

The event was also attended by American friends of Ukraine Jim Slattery and Michael Zovnir, who expressed their unconditional support for Ukraine and shared their views on banking system reform and the need to protect investments in the banking sector.

"In the near future, I am sure that the American side will support a new package of support for Ukraine, and this decision will find support in both the Congress and the Senate," Jim Slattery, an American politician and U.S. Congressman of six convocations, assured Ukrainians.

The American guest emphasized that after the war is over, it is the stability of the banking system and the security of private investment that will be critical in the process of rebuilding the country.

Vasyl Shakun, Doctor of Law, Professor and Full Member of the National Academy of Legal Sciences of Ukraine, shared his views on the absence of the concept of "national wealth" in the Constitution of Ukraine and emphasized the unconstitutionality of certain provisions of banking legislation, in particular, the powers of the Deposit Guarantee Fund.

During the discussion, Vladyslav Filatov, Director of the Bankruptcy Department of the Ministry of Justice of Ukraine, and Hryhoriy Shevchenko, Deputy Chairman of the Council of Insolvency Receivers of Kyiv, discussed the possibility of involving insolvency receivers in bank insolvency procedures and the complexity of reforming the banking system due to its intricacy.

Olena Kokhanovska and Anton Monayenko shared their experience on further actions and reforms in the banking sector, in particular through the prism of the principles of good faith of its participants. Sergiy Lysenko, Managing Partner of Gracers Law Firm, added that Ukrainian judicial practice currently lacks an understanding of what economic feasibility and risk are, and assessed the criminal and legal risks for bank owners and the guarantee fund in the voluntary settlement of disputes.

We thank all participants for the interesting discussion!