Supreme Court supports NBU's legal position in dispute on application of corrective measures to PrivatBank before its nationalization
The Supreme Court of Ukraine on July 17 supported the legal position of the National Bank of Ukraine (NBU) in a dispute with the client of PrivatBank, according to the website of the NBU.
"The dispute arose out of a lawsuit filed by the individual, who, inter alia, asked to declare illegal the NBU's inaction regarding the recognition of PrivatBank as a problem bank. PrivatBank was the third party in the dispute," the report reads.
"Due to the absence of a consistency criterion, the NBU is under no obligation to make decisions on recognition of a bank as the problem bank. A warning letter as the corrective measure taken by the NBU against a failure to submit and publish annual statements within a specified period of time is proportionate to the violation committed by PrivatBank," it says.
"The illegal inaction of the authority must be understood as an outward form of the authority's behavior (activity), which constituted the lack of decisions or legally binding and mandatory actions in favor of the concerned parties, which fell within the scope of the authority's competence under a law or a different regulatory legal act, were objectively necessary and practically possible for the implementation, yet not implemented," the Supreme Court stated.
"The NBU considers this decision to be an example of how the rule of law is ensured under the current reforms in the justice sector of Ukraine. The NBU also expects that courts will further take into account the legal position of the Supreme Court in similar disputes," according to the document.