The Individuals' Deposit Guarantee Fund using decision No. 46-rsh of the board of the National Bank of Ukraine (NBU) dated June 2, 2016 eliminating the bank license and liquidating insolvent bank Khreschatyk (Kyiv) has started the bank liquidation procedure.

The fund said on its website that the decision was made by its executive directorate on June 3.

The liquidation procedure was launched on June 6 and will last until June 5, 2018.

Ihor Kostenko has been appointed liquidator of the bank.

The NBU on April 5 declared Bank Khreschatyk insolvent. The Individuals' Deposit Guarantee Fund introduced temporary administration until June 4, 2016.

The bank's depositors are 308,000 individuals, 98.7% of them will be fully reimbursed for their funds (up to UAH 200,000). The total amount to be recovered is UAH 2.8 billion.

The main reason for the bank's insolvency is the reluctance of other shareholders to invest in the capitalization of the financial institution. The NBU on the results of stress tests estimated the need for the bank recapitalization at UAH 1.25 billion by June 2017, including UAH 600 million by May 1 this year.

According to the latest data on the bank's ownership structure, its largest co-owners are Andriy Ivanov (37.44%), Mykola Soldatenko (24.24%) and Kyiv City State Administration (25%).

Ivanov is a junior partner of Kyiv Investment Group, Soldatenko is a former co-owner of Zaporizhstal, a minor shareholder of Industrialbank.

Bank Khreschatyk was founded in 1993. It ranked 18th among 123 Ukrainian banks on October 1, 2015 in terms of total assets (UAH 10.09 billion).