Deposit Guarantee Fund proposes Porto-Franco, Axioma, Demark banks be liquidated

The Individuals’ Deposit Guarantee Fund has sent a proposal to the National Bank of Ukraine (NBU), that the banking licenses of Bank Porto-Franco (Odesa), Bank Axioma (Dnipropetrovsk) and Bank Demark (Chernihiv) be revoked and that the banks be liquidated.

According to the fund’s report, the cheapest way of removing the banks from the market was proposed, due to the fact that temporary administrations at the banks has expired.

The fund said that payments to bank depositors will be resumed no later than seven days after the banking licenses have been revoked and liquidation proceedings have begun.

As reported, the Individuals’ Deposit Guarantee Fund introduced temporary administrations for three months at Porto-Franco and Demark on September 29 and at Axioma on October 10. At the end of December administration was prolonged until late January.

Bank Porto Franco was founded in 1991. Its largest shareholder as of April 1, 2014 was Myroslav Shkolenko (83.4314%).

Bank Demark was founded in 1992. On July 1, 2014 the largest shareholder of the bank was Fininvest (49.76%).

Bank Axioma was founded in 2006. Rodonit-Finance LLC holds a 24.8778% share in the bank, Alad-Dnipro LLC 24.9753%, Kars-Commerce LLC 24.9696%. Tetiana Chetverik holds 96% in private joint-stock company Brokinvest-Laert. Brokinvest-Laert holds 99.9862% in Rodonit-Finance LLC. Oleh Reznikov holds 99.9% in Sfeno LLC. Sfeno LLC holds 99.7695% in Kars-Commerce LLC. Vasyl Husev holds 100% in Emtek-Service LLC and Emtek-Service LLC holds 99.7674% in Alad-Dnipro LLC.

According to the NBU, as of July 1, 2014, Bank Demark ranked 74th among 166 operating banks of Ukraine in terms of overall assets (UAH 2.117 billion), Bank Porto Franco — 86th (UAH 1.427 billion) and Bank Axioma — 100th (UAH 1.036 billion).

Source: Interfax-Ukraine