The bank was left with non-performing loans secured by junk securities and without money.
In fact, a year before the temporary administration was introduced, the assets of Petrokommerts Bank almost halved – from 1,300 million to 700 million UAH. This was told by Katerina Misnik, Director of the Department of Investigation of the Deposit Guarantee Fund (GFD).
According to her, the estimated value of the assets was even lower – 230 million UAH. Thus, the bank suffered damage totaling about 1 billion UAH.
Until 2015, the financial institution belonged to the Russian bank Petrokommerts, and its main activity was servicing corporate clients, whose loans had cash collateral — real estate, production facilities, and the like.
In March 2015, the Russian bank sells all Petrokommerts -Ukraine shares to 11 individuals. Since then, the quality of the bank’s assets has declined, which is directly related to the illegal actions of the institution’s officials.
Later it turned out that in the process of liquidation of the bank FC Central Capital LLC and UUSB Bank OJSC became one of the main participants in the asset withdrawal schemes.
In particular, an agreement was concluded between banks, according to which Petrokommerts-Ukraine acquired the rights to claim 5 loans from UUS Bank, provided with junk securities of two fictitious companies.
The correspondent account of Petrokommerts-Ukraine in YUSB Bank charged 206.36 million UAH necessary for the calculation, which was tentatively transferred by the Central Capital financial company as payment for the loans acquired from Petrokommerts -Ukraine secured by highly liquid assets.
As a result, Petrokommerts -Ukraine Bank was left with non-performing loans, secured by junk securities, and without money.
On March 3, 2016, the National Bank introduced a special regime of control over the activities of the bank. Considering the scale of the revealed frauds, on March 7, 2016, the bank was recognized as a problem one, and a temporary administration was introduced on March 17.
The bank liquidation procedure was started on April 22, 2016.