This was reported by the press service of the Deposit Guarantee Fund.
As stated by the Fund, after the introduction of a temporary administration at "Bank Golden Gates," it was discovered that a significant portion of the loans was issued by the bank to a number of borrowers connected by both the personal property guarantor and the collateral (securities with questionable liquidity). In some cases, credit operations were conducted despite findings of their credit unworthiness. Furthermore, during the process of withdrawing the bank from the market, these borrowers failed to service their loans.
Ultimately, the risky lending practices of "Bank Golden Gates" resulted in the bank lacking the funds to meet its obligations to depositors and creditors.
This week, from February 17-21, courts of various instances are reviewing lawsuits from the Deposit Guarantee Fund against related parties and owners of 12 banks being withdrawn from the market. These lawsuits are in both civil and criminal proceedings.