Deposit Guarantee Fund €200 million financing

Overview:

• Ukraine's Deposit Guarantee Fund borrowed €200 million to assist in guaranteeing deposits in insolvent some of the country's many insolvent lenders. 
• The Deposit Guarantee Fund is a Ukrainian state-controlled entity designed to protect savings in domestic banks.
• State-owned German development bank, KfW, provided the financing.
• Ukraine's banking system is going through a period of transition as the country's central bank implements reforms dictated under the terms of country's bail-out from the EU.  
• Since 2014 close to 100 Ukrainian lenders have been liquidated under orders from the The National Bank of Ukraine (NBU) after failing to meet regulatory requirements concerning transcparency and capital adequacy.

Ben Naylor - Regional editor