In 1991, the Ukrainian Commercial Bank was established. After 4 years, it was renamed to "Finance and Credit." For a long time, the credit institution functioned without problems. In 2013, the bank took 13th place in the NBU list in terms of assets. The main shareholder is Askania LLC (45.92%), PJSC F&C Realty (41.58%), and the beneficiary is businessman Konstantin Zhevago. Since 2014, the rating of the bank “Finance and Credit” has sharply decreased due to problems with solvency.
Financial results
For the first quarter of 2015, the bank 's assets increased by 21.2% due to the growth of deposits (by 3.310 billion UAH). At the same time, the loss amounted to UAH 715.7 mln., Which is 13 times more than last year. Due to the difficult economic and political situation in the country, many customers cannot fulfill their obligations to the bank. Therefore, the amount of expenses for the formation of reserves increased 3 times: from 211.9 to 688.4 million UAH.
Bank "Finance and Credit": problems with deposits
Last year was very difficult for Ukraine as a whole and the banking sector in particular. Following the collapse of the Ukrgaz, Rodovid, Brokbusiness and Nadra organizations, the Finance and Credit Bank may disappear from the Ukrainian market. Feedback from worried contributors to the forums and constant strikes in front of the NBU building only exacerbate the situation.
For a long time, shareholders were able to hide the difficult financial situation of the organization. Problems began when the dollar disappeared from the exchangers. Bank "Finance and Credit" (Ukraine) has ceased to pay deposits to customers, citing the lack of currency in cash. In response to any comments, employees offered to sign up in line for the issuance of dollars. At the same time, the maximum that a client could count on is a chance to get $ 100. Not money itself, but just an opportunity. At the same time, the Finance and Credit Bank first returned foreign currency deposits to customers in hryvnias at the official rate of the NBU. The difference with the market rate was enormous, so not many agreed to such a scheme. Then deposits ceased to issue at all. Both hryvnia and in foreign currency.
Outside help
Employees answered all questions of clients that refinancing of the bank “Finance and Credit” is expected, and offered to call back after a certain number of days. According to the Central Bank, negotiations regarding recapitalization have been ongoing since 2014. But then the main beneficiary refused to pour funds into the institution.
But in February 2015, the NBU granted the organization a stabilization loan in the amount of UAH 700 million. with a maturity of 2 years against collateral - an integral property complex. And in June 2015, at an extraordinary meeting of shareholders, it was decided to increase the authorized capital by placing additional shares in the total amount of UAH 1, 972 billion. The primary right to purchase corporate rights is held by the main shareholders: Askania LLC and PJSC F&C Realty.
Bank "Finance and Credit": customer reviews
Although the credit institution received a certain amount of money to restore liquidity as part of the refinancing program, clients still have problems. The funds of legal entities are in a frozen state, without any movement. Individuals cannot withdraw from the card amounts exceeding 2 thousand UAH. in a day. At the same time, information appeared that interest on deposits was paid by the Finance and Credit Bank. Customer reviews confirm that the money actually began to flow into the card account. But not everyone is lucky, but only to those who agreed to prolong the contract. But they do not forget about their debtors in the bank. A credit institution does not spend a lot of time selling the right to demand debt to collectors, but it itself files a lawsuit. As a result, customers have to pay huge amounts of delinquencies and fines, which are several times higher than the main debt.
Expert Advice: How to get a refund
The lack of liquidity is experienced not only by the bank “Finance and Credit”. Solvency problems have affected dozens of large institutions in the country. But experts say that you can return the money without going to court.
Method one: exchange a deposit for a loan
Such a scheme will work only if both products are registered in the same bank branch. But the nuances need to be discussed directly with representatives of the credit institution. A few years ago, an exchange scheme was offered to third parties. The owner of the deposit copied his contribution to the borrower. The beneficiary turned to the Finance and Credit Bank (Ukraine) with a request to credit the savings. Then, the borrower paid in cash to the depositor the amount of the loan debt. As a result, the first got rid of debt, and the second received real money. The discount could fluctuate between 20-50%. But even with such a difference, people could pay off a mortgage of 500 thousand UAH by paying in cash half of this amount. But the lack of legal regulation of such relations allows any of the parties in the litigation to challenge the transaction.
Method two: write complaints to the NBU
If a credit institution appreciates its reputation or does not want to build relations with the regulator, then such actions may motivate the return of funds to the client.
Convert deposits to stocks
The condition of the bank “Finance and Credit” is unsatisfactory and requires additional injections. Therefore, the founders decided to increase their equity by issuing shares. Recently, the NBU invited depositors to exchange their deposits for shares of a credit institution. This proposal did not cause much enthusiasm among the population. Why does an ordinary citizen need corporate securities of a bank? Even in Cyprus, where the sector was well developed in pre-crisis times, such a proposal was perceived negatively. In Ukraine with a weakly functioning stock market, such news can entail only an additional outflow of capital.
Court as a way out
Not many customers agree to file a lawsuit themselves. Especially if the costs exceed the amount of the deposit itself. Judicial practice shows that in most cases the decision is made in favor of the client. Indeed, the non-return of the deposit is a violation of article 382 of the Criminal Code of Ukraine. And today it is the most effective method of debt collection.
Lawyers advise you to prepare for this process in advance and start communication with the bank only in writing. First you need to submit an application with a request to terminate the deposit agreement (the terms for its execution are indicated in the document). The application must be sent either by valuable letter in the mail or written in duplicate. The second should be the incoming number, the date of registration of the paper. If after the termination of the contract the credit institution does not give out money, citing various reasons, you should contact the bank chairman and the NBU with complaints. After that, it is worth filing an application with the court.
The claim should indicate not only the requirement to return the deposit amount and interest, but also insist on payment of a penalty for violation of the terms (usually it is 0.001%, maximum 10% of the deposit amount). Do not forget about compensation for moral damage, a fine for late payment. There is a chance to sue 3% of the delayed amount, as well as cover inflation.
Litigation can take a lot of time (from several months to several years) and money. Regulatory expenses include court fees (1% of the amount of the claim, maximum 3654.00 UAH.). The cost of legal assistance, where the price range is very large, can be recovered from the defendant.
TOP managers in response
The most desperate clients file a petition asking them to make the official responsible for travel abroad, prosecute him and confiscate part of the property against an unpaid deposit. This scheme requires a lengthy pre-trial investigation, decision and enforcement of the sentence. The problem here is that the defendant may simply not have the property sufficient to pay the debt on the deposit with interest. The second nuance: the plaintiff must prove that the TOP manager intentionally did not comply with the court decision. It takes months. However, lawyers assure that this method of struggle for deposits is legal, and depositors have a chance to win a lawsuit.
The reliability of the Bank "Finance and Credit" has greatly decreased. Clients from Donbass and Crimea suffered the most. Despite the trials won, the client still cannot return their funds.
Opening a criminal case against a TOP manager does not guarantee receipt of a deposit with interest. But this will definitely make bankers listen to people's problems and begin to solve them. If you don’t do anything at all, then you can either not wait for payments at all, or receive funds from the Deposit Guarantee Fund.
Who should sue
Refinancing of Finance and Credit Bank has not yet yielded the expected result. The longer the NBU drags on with the introduction of an interim administration, the more difficult it will be to receive money. Clients whose deposit amount does not exceed UAH 200 thousand guaranteed by the state will receive their money anyway. The only question is when. But large investors should hurry up with the lawsuit and file claims before the introduction of the interim administration.
Conclusion
Due to the difficult economic situation in the country, 5 large institutions left the market over the past year. Next in line is the Finance and Credit Bank. Customer reviews confirm that recently it has become very problematic to receive a deposit and the required interest on it. They explain to customers that due to the lack of money in the bank, it will not be possible to return the savings on time. Experts advise in such cases either to exchange a deposit for a loan, or to file a lawsuit and prepare for a lengthy lawsuit and additional financial costs. Moreover, if the deposit amount exceeds 200 thousand UAH, then it is better not to delay the lawsuit.