The World Bank suggests that Ukraine increase its Private Deposit Guarantee Fund five times, National radio reported.
The concern of the WB experts
over the shortage of the fund's assets owes to the fact that not all of
Ukrainian banks will be able to survive the current difficult times,
and some banks may close, which will essentially harden the burden on
the fund.
The World Bank proposes that the Ukrainian government
either extend a loan to the fund, or increase bank contributions.
Currently, while entering the fund, banks pay 1% of their capital, and
then 0.25% of the sum total of their deposits each six months. With
the current rates and volumes of deposits, banks must pay to the fund
UAH 540 million (UAH 7.70 / USD 1) for the first half of 2009.
Last
year, the National Bank gave a loan of UAH 1 billion to the deposit
guarantee fund, which made it possible to increase the maximal sum of
compensation to UAH 150,000. In 2007, the assets of the fund grew by
54%, and in 2008 by 123.7%. If the World Bank's proposal is approved,
the assets of the fund will rise fivefold.
