The Individuals' Deposit Guarantee Fund under a decision of the National Bank of Ukraine (NBU) to liquidate bank Mykhailivsky and annul its license has started liquidating the bank, the fund has reported on its website.

The liquidation procedure will last from July 13, 2016 until June 12, 2018. Yuriy Irkliyenko has been appointed liquidator.

The fund said that payments to the bank's depositors will commence on July 18.

The NBU placed bank Mykhailivsky to the list of insolvent banks on May 23, 2015 due to risky transactions.

The central bank also accused the bank of perpetrating a fraud on May 20. The burden on the Individual Deposit Guarantee Fund increased from UAH 1.6 billion to UAH 2.6 billion.

The owner of the Eldorado electronics retail chain Viktor Polischuk several days before bank Mykhailivsky was declared insolvent sold his controlling stake of 92.501% in Ekosipan LLC, which is 100% owned by a group of individual investors.