First Credit Society expects PGO, administrative courts to intervene in conflict with financial service markets watchdog

Kyiv, August 6 (Interfax-Ukraine) – The Odesa-based First Credit Society expects that the Prosecutor General's Office, Odesa Administrative Court and Kyiv Administrative Court will intervene in its conflict with the state commission for financial service markets regulation.

The chairman of the All-Ukrainian NGO Ukrainian Financial and Credit Alliance, Chairman of the Supervisory Board of the First Credit Society Andriy Azarov said at a press conference at Interfax-Ukraine on Thursday that the credit union had sent several appeals to the above-mentioned bodies to consider the issue of illegal actions of the state commission during the introduction of temporary administration in the credit union.

He also said that the commission used force when introducing temporary administration in the credit union, and protocols and applications were submitted to the Prosecutor General's Office and Interior Ministry.

"Today we're waiting for a reaction from the authorities on the issue," Azarov said.

Deputy Head of the council of the All-Ukrainian Association of Credit Unions of Military and Law-Enforcement Officers, Yevhen Babkin, said that there are no high-quality laws regulating the work of credit unions. Azarov said he agreed with Babkin on this issue.

As reported, on March 3, 2010 the commission temporary suspended the licenses of First Credit Society. The decision was linked to the fact that the commission received 318 complaints by First Credit Society depositors in 2009 and 78 in the first two months of 2010. On July 8, 2010 the commission decided to introduce a temporary administration in the credit union.

On July 20 it was reported, referring to the head of the state commission for financial service markets regulation, Vasyl Volha, that the commission members had failed to start fulfilling their duties, as they did not have access to documents.