Pursuant to the amendments to the Civil Code of Ukraine, passed by the Parliament of Ukraine on 14 May 2015 (the “Amendments”), effective as of 6 June 2015, the bank shall no longer be obliged to return the term deposit amount and the accrued interest to the client upon first demand unless the early withdrawal option is expressly provided in the deposit agreement.
As opposed to the term deposits, call deposits can be withdrawn by the client upon first demand. Any contractual waiver of the right to withdraw the deposit under the call deposit agreement shall be deemed void.
Asters reports that the Amendments shall not apply to the deposit agreements signed before the Amendments effective date. The adoption of the Amendments was welcomed by the market as a significant step forward helping to overcome the ambiguity of the legislation concerning early withdrawal of deposits.