Bank "Finance and Credit": problems. Bank customer reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Bank "Finance and Credit" has been experiencing problems for a long time. Previously, it was one of the largest banks, and today it has almost gone down in history. The problem is that the state refused to support the work of a financial institution. And Mr. Zhevago has long lost this desire. The brilliant history of the financial market giant, which began in 1990, almost came to an end in the fall of 2014.

An excursion into history, or how the Zhevago empire appeared

Branches of the Bank "Finance and Credit" a year ago successfully worked throughout Ukraine, providing high-quality services to tens of thousands of customers. The history of the giant of the financial market began in 1990, when the State Bank of the USSR registered the company as the "Ukrainian Commercial Bank for Business Cooperation". The new owners of the institution gave the financial institution a new name in the 90s. The new founders at that time were representatives of the Ukrainian "Magnificent Seven":

• B. Medvedchuk.
• Surkis brothers.
• B. Zgursky.
• Yu. Karpenko.
• B. Gubsky.
• Yu. Lyah.

It was they who were interested in the question of where to put their capital for preservation, which they received by participating in the largest financial pyramid of the past called "Ometa 21". That is how the well-known throughout the country bank "Finance and Credit" appeared, at the head of which it was decided to put Konstantin Zhevago, at that time still a simple student.

Active action

From the first minutes of the existence of the updated version of the bank, its head began to take active steps, applying a creative approach to managing a large-scale financial structure. Today, Finance and Credit Bank is bankrupt, and earlier it was a massive buyer of expensive shares and shares in a wide variety of Ukrainian companies. The management of the institution managed to attract foreign capital. The most famous investor was I. Bakay, who made a significant contribution to the transformation of the domestic institution into a mini-Switzerland. On the accounts of the financial structure, the contributions of political opponents, industrial groups, and criminal and semi-criminal structures peacefully coexisted. Despite the inactivity of the institution in the public sphere, minimal participation in interbank trading and passive lending to individuals, he always managed to be in the first places in the NBU rating. There were no negative reviews and statements regarding the Bank "Finance and Credit", whose problems began relatively recently, until the moment of bankruptcy.

First problems

With the first difficultiesa large financial structure collided already in the second half of 2008. It was at that time that a wave of crisis swept over Ukraine. By this time, the Finance and Credit Bank, under the strict guidance of Zhevago, had turned into a typical commercial structure that served the group of companies of the head. It included at least 60 enterprises and firms. It was these Zhevago organizations that were the main consumers of the bank's clients' funds, and they received them at the most favorable interest rates and on attractive terms. It can be said that the Finance and Credit Bank (it almost burst in 2014) then deliberately took a risk, jeopardizing the fulfillment of its obligations to customers. In 2008, many financial institutions faced difficulties, but not many received material support from the National Bank. It is very interesting that the lion's share of the provided capital was successfully spent on speculation within the foreign exchange market.

Fatal 2009: last hopes

Spring 2009 was fatal for the bank. It all started with problems at such enterprises as AvtoKrAZ, which stopped production at that time for at least six months, and Kievmedpreparat, which allowed a technical-type default on issued bonds, which promised a real default. There were also difficulties at the Stakhanov Carriage Building Enterprise, which failed to find orders for 2009. All these enterprises were the property of Zhevago. By an unfortunate coincidence, on the very verge of default at that time, the Bank "Finance and Credit",branches of which successfully worked throughout Ukraine.

Who does the bank owe?

The financial institution was unable to return not only money to individuals, but also a loan of $ 70 million, which it took from such structures as Raiffeisen Zentralbank, Standard Bank and VTB-Bank. The bank failed to pay even the interest on the loans. The loan portfolio of that time included about 35% of mortgage loans, which amounted to about 4.85 billion hryvnia. During the crisis that prevailed at that time, this category of debts was automatically transferred to the category of bad debts. Bank experts assessed the situation and announced that to keep the institution afloat, it requires capital investments in the amount of UAH 5.5 billion.

Temporary fix

The management of the Bank "Finance and Credit" (Kyiv) in March 2009 decides at an extraordinary meeting to ask for help from the state. Considering that the manager of this institution was in parallel a people's deputy from the BYuT party and simultaneously acted as the largest sponsor of this bloc, the decision of the Cabinet of Ministers turned out to be not only positive, but also very prompt. Thus, the Bank "Finance and Credit", whose problems did not recede, is included in the list of seven financial institutions of Ukraine, which are capitalized at the expense of the state budget. Let us pay attention to the fact that funds that could help solve the problem with depositors and the payment of deposits wereredirected in a different direction. Today, the Finance and Credit Bank is closing due to the fact that at the time of the crisis, free funds, and this is about 300 million hryvnias, were used to lend to AvtoKrAZ and Kherson Cardan Shaft Plant. The loan term was 63 months at 14% per annum, when the average rate on the market was in the range of 26.4%.

Trading with the government and the wrong decision

After the receipt of funds from the government to the bank accounts, real trading began. The Cabinet of Ministers began to actively demand from each of the institutions that fell into the seven lucky ones, to re-register about 75% of the shares to the state. And even a demand was put forward that in the bank "Finance and Credit" the interim administration would replace the existing management for a period of up to 12 months. The management of the financial structure agreed to transfer only 50% of the shares and gave permission for the introduction of a supervising curator into the staff.

Rejection of government assistance

Government support ended when the recapitalization process became flat. The management of the bank completely refused any help from the government. After the National Bank of Ukraine allocated about 2.5 billion hryvnias to maintain the structure of the institution, Zhevago said that he would continue to cope with his own difficulties. The consequence of such a strange decision was the inability of the financial institution to process client payments, the inability to return to individualsdeposits that have expired. It is also very interesting that the Finance and Credit Bank, whose problems were provoked to a greater extent by the management itself, continues to redirect all available funds as loans to the accounts of Zhevago companies. This development of events, which has already been made public, pushes the public to indignation and may result in mass discontent and protests. At the time of the problems, the financial institution serviced about 119,000 time deposits and about 217 current accounts.

Beware of scammers

Today, many say that the bank "Finance and Credit" is bankrupt, but this does not stop the structure. Relatively recently, the largest advertising campaign was launched, in which many people believed. The Big Seven deposit was promoted with good interest rates. It is strange, but for some reason, the fact that by the beginning of 2015 many bank branches (at least 80) ceased to exist is silent. At least 20% of employees have already been laid off. The deputy head of the institution had the imprudence to publicly say that the financial corporation is experiencing difficulties and over time the losses will only increase. At the very least, this should have alerted the government of Ukraine.

What depositors and clients are saying

Clients and depositors of the bank, whose deposits expired in 2015, cannot receive their money. Arbitrariness occurs in many departments. Employees of the Bank "Finance and Credit", temporary administration inwhich was never introduced, carry out an independent prolongation of deposits. If earlier the expiration date of the deposit was announced in advance, today this is not practiced. Despite the availability of funds in the cash register, no one gives out money. The happiest investors are those who managed to get at least 20% of their contribution. Mass indignation does not change the situation. Among the victims there are single mothers, disabled people, and ordinary students. This does not affect the fact of non-payment. Security has appeared in some branches, which removes customers actively demanding their funds from bank premises. Previously, this practice was not used.

All is not lost, there is a small chance

Despite the fact that the bank does not fulfill its obligations to customers at all, its management continues to take active measures to recapitalize. At the meeting on March 23, it was decided to increase the authorized capital of the institution by issuing bank shares in the amount of UAH 616.4 million. So far, the Finance and Credit Bank has not completely collapsed, and there is still a little hope. The first launch of shares on the market brought a plus of 22% to the authorized capital (UAH 3,416.4 million). The next meeting of shareholders is scheduled for April 27, 2015. It will officially count and announce the results of work for the past 2014. The question of the reconstruction of the government apparatus will be considered. According to preliminary forecasts, it is Finance and Credit, a bank (including the Kharkiv branch), which in the future will receive assistance from the regulator in the amount of UAH 700 million, which shouldhelp fulfill all obligations to investors. The decision is due to the fact that 4% of all bank deposits in Ukraine and 2% of all the country's assets are concentrated within the financial structure. The credit institution itself belongs to the first category.

What could get in the way of brilliant plans?

Definitely say that the bank "Finance and Credit" is closed, does not allow the fact of active actions on the part of shareholders. At the same time, there is another interesting point that can cross out all the brilliant management plans. Cargill has filed a New York State court request to freeze correspondent accounts. The request was promptly granted before the completion of legal proceedings. A $44 million debt looms over Finance and Credit today. The bank (Kharkiv, Kiev and other branches) promises to restructure the debt. The management insists that it does not refuse to fulfill its obligations to any of the creditors. It was suggested that negotiations be held to resolve this problem. It is not known how the situation will unfold further, investors can only wait and hope for the best. Experts, leaning toward negative forecasts, do not rule out the possibility of the financial structure withdrawing from a protracted crisis and full compensation of deposits to each of the clients.