11:31 05.07.2018

Supreme Court upholds liabilities of two guarantors on PrivatBank's refinancing loans taken from NBU

2 min read
Supreme Court upholds liabilities of two guarantors on PrivatBank's refinancing loans taken from NBU

The Supreme Court of Ukraine on July 3 upheld the legal position of the National Bank of Ukraine (NBU) that two guarantors are obliged to fulfill the liabilities of PrivatBank (Kyiv) on refinancing loans, the central bank has reported on its website.

This concerns claims of Agroterminal Logistic LLC (Zaporizhia) and Pivdenmedbiosytez design and survey institution (Odesa) against the NBU seeking to terminate mortgage agreements with PrivatBank.

The claimants, in particular, said that the changes in the corporate portfolio of the borrower (the change of the owner of the bank after its nationalization) is attributable to significant changes in circumstances, which the sides based on when they signed the agreement, and the agreement must be terminated.

"The courts of lower instance and appeals upheld the claimants. The National Bank and PrivatBank did not agree with the rulings of the judges and appealed to the Supreme Court with cassation claims. After the detailed expert analysis of the dispute, the Supreme Court annulled the previous court rulings and fully rejected the claims of Agroterminal Logistic LLC and Pivdenmedbiosytez," the NBU said.

The central bank also said that the decisions of the Supreme Court are an example of providing for rule of law in modern conditions of reforming justice in Ukraine and expects that the legal position of the Supreme Court will be taken into account by other courts in similar cases.

The NBU also said that Kyiv's business court of appeals on July 2, 2018 heard the counterclaims of the NBU and PrivatBank against the ruling of Kyiv's business court under the claim of Imme LLC (Dnipro) seeking to terminate the mortgage agreement.

The court upheld the counterclaims of the regulator and the bank.

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