The Cabinet of Ministers has submitted to the Verkhovna Rada a draft law on amendments to certain legislative acts of Ukraine (regarding the improvement of the individuals' deposit guarantee system and withdrawing insolvent banks from the market), which provides a set of measures to enhance the protection of depositors' rights by accelerating payment of compensation at the expense of the Individuals' Deposit Guarantee Fund.

Relevant information is available on the website of the parliament.

An explanatory note to the bill states that its purpose is to also improve the procedure of withdrawing insolvent banks from the market, including the consolidation of assets sales in the structure of the Individuals' Deposit Guarantee Fund.

"The creation of a consolidated office for the sale of insolvent banks' assets in the structure of the fund, the acceleration of compensation payments to depositors and the extension of banks' liquidation to five years are the liabilities of the Ukrainian side to international financial institutions," reads the explanatory note.

The bill, in particular, proposes accelerating the start of compensation payments to depositors if the bank is liquidated by reducing the terms of formation and approval of the register of depositors from three days to one and from six to three days respectively. Payments should begin on the day following the date when the register of depositors is approved, instead of seven days which was set previously. In addition, it is proposed to introduce an accelerated liquidation of insolvent banks and prohibit the possibility of extending the term of the bank's problematic status.