Ukraine's state Oschadbank wins lawsuit against ex-owner of Delta Bank

The case concerns Delta Bank's failure to fulfill obligations under two contracts of 2010 related to the opening and maintenance of correspondent accounts, which were provided against Lahun's personal guarantees, the press service said.

According to Oschadbank, the ruling by the Supreme Court has for the first time in Ukraine's history unconditionally confirmed the effectiveness of the institution of surety of an individual on bank obligations under agreements on opening and maintenance of correspondent accounts, which can be used in favor of banks in similar disputes.

UNIAN memo. State-run Savings Bank of Ukraine, or Oschadbank, was registered by the National Bank of Ukraine (NBU) on December 31, 1991. It is wholly owned by the state. 

Read alsoState-run Oschadbank reports 21.7% profit increase in 1HDelta Bank had been operating in the Ukrainian market since 2006 as one of the largest banks. Its major shareholders were businessman Mykola Lahun with a stake of 70.61% and Cargill Financial Services International Inc. (the United States) with a share of 29.39%.

Temporary administration was introduced at the bank on March 2, 2015, based on an NBU decision to declare the financial institution insolvent. The Deposit Guarantee Fund launched the Delta Bank liquidation procedure on October 8, 2015.