Fidobank (Kyiv) has acted as an investor in insolvent Promeconombank (Donetsk) with the purpose of withdrawing it from the market.

According to a press release of Fidobank, the executive directorate of the Individuals' Deposit Guarantee Fund on July 28 declared Fidobank the winner of a tender among investors. The agreement on the transfer of assets and liabilities and the assignment agreement on mortgage credits were signed on August 22.

Under the conditions of the agreements, Fidobank accepted liabilities of Promeconombank on deposits and banking accounts of individuals in the amount of up to UAH 200,000 in the equivalent and credits of companies and individuals and claims to collaterals, apart from currency-pegged mortgage credits of individuals.

According to the report, due to the fact that a major part of clients of insolvent bank live in the counterterrorist operation zone, the funds will be paid using Fidomarket, a financial online platform of Fidobank to secure clients' deposits and facilitate payments. The funds will be sent to accounts in the currency of deposits specially opened for clients in the size of the deposit and accrued interest rates as of the date when the temporary administration was introduced, but no more than UAH 200,000 in equivalent. Fidobank will accrue interest rates for deposits which term has not yet expired.

Board Chairman and owner of Fidobank Oleksandr Adarych said that clients of Promeconombank are to come to the closest department of Fidobank to identify themselves and check the information on the size of deposits.

"We understand in what situation are the clients of Promeconombank, and we're ready to spend as much time and as many resources as it is required to support them and settle payments safely," Adarych said.

As reported, temporary administration was introduced to Promeconombank for three months until August 21, 2014. The fund prolonged temporary administration at Promeconombank until September 22, 2014.

Promeconombank was founded in 1993. Its largest shareholder on April 1, 2014 was PJSC Supreme-K (42.4971%).

Fidobank was established in 1991. In November 2013 the process of the merger of Fidocombank (previously Erste Bank) and Fidobank was completed.

The largest shareholder of Fidobank as of April 1, 2014, in addition to Finance Analit Service consulting firm (79.9697%), was Ignace Marketing Limited (Cyprus) with 20%.

According to the National Bank of Ukraine, in terms of total assets as of July 1, 2014 Fidobank ranked 21st (UAH 11.81 billion) and Promeconombank 108th (UAH 854.824 million) among the 173 banks operating in the country.