The Guarantee Fund won the appeal in the case concerning 890 million UAH in losses for Demark Bank.

The Northern Appeal Economic Court has ruled in favor of the Deposit Guarantee Fund (FGVFO) in a lawsuit against related parties of PJSC "Bank 'Demark'" for 890.5 million UAH. 

The court made this decision on January 13, as reported by the FGVFO press service.

In 2014, the bank was declared insolvent. Prior to this, "Demark" had implemented a lending policy that ultimately resulted in losses exceeding one billion UAH for the bank and its creditors.

After the process of withdrawing the bank from the market began, it became clear that over the years "Demark" had entered into dozens of similar loan agreements, secured by illiquid collateral, which led to non-repayment and a prolonged accumulation of debt. Another common feature was the loan amounts – each borrower received between 36.5 million and 38 million UAH.

In 2013-2014, members of the management board and credit committee approved the issuance of such loans to eleven companies. This caused losses of approximately 890 million UAH. 

Currently, another lawsuit from the Fund against related parties of PJSC "Bank 'Demark'" for 434.5 million UAH is under consideration by the appellate court. 

The Deposit Guarantee Fund has paid out 993.6 million UAH to the bank's depositors.

Recall that the Chernihiv-based bank "Demark" operated in the Ukrainian market since 1992 and was classified as one of the small banks by the National Bank in terms of asset volume. In September 2014, the bank was declared insolvent by a decision of the NBU, and temporary administration was introduced. The liquidation procedure began in January 2015 following the NBU's decision to revoke the banking license.

49.76% of the bank was owned by Andriy Shynkovenko through LLC "Fininvest." The remaining shares are held by 206 individuals – 49.65% and 16 legal entities – 0.59%.