KYIV. April 23 (Interfax-Ukraine) – The large depositors of the insolvent Delta Bank (Kyiv) expect the Ukrainian parliament to pass a law which will return their deposits, representative of the initiative group of the depositors of insolvent Delta Bank Herman Panikar said at a press conference at Interfax-Ukraine on Wednesday.

He said that the draft law on amending some Ukrainian laws to expand the tools of the Individuals' Deposit Guarantee Fund to remove insolvent banks from the market, with the purpose of retaining the deposits at insolvent banks (No. 2188), proposes an efficient mechanism on liquidating insolvent banks via the transfer of their assets and liabilities to an accepting or transition bank, with the condition that deposits larger than UAH 200,000 covered by the deposit guarantee fund are temporarily frozen.

Panikar said that this way of removing insolvent banks from the market will retain the funds of all depositors and clients of banks: funds received from payment of credits and work with assets will be gradually allocated to pay deposits.

"The deposits will be frozen and banks would not require injections from the budget. We believe that the transition bank created at the deposit guarantee fund would be able to cope the task best of all," he added.

President of the Association of Ukrainian Banks (AUB) Oleksandr Suhoniako said that the model was used in Germany, which shows that it is efficient.

Draft law No. 2188 was registered in the parliament on February 20, 2015. The initiators of the document were MPs Serhiy Rybalka, Mykhailo Dovbenko, Viktor Romaniuk, Yuriy Solovei, Ivan Fursin, Oleh Lavryk, and Stepan Kubiv.