MFS Depository Finalizes Establishment of Backup Office

JSC MFS Depository (Interregional Depository and Clearing/Settlement Organization, Mizhregionalny Fondovy Sojuz) based in Kyiv established a backup office in Kyiv that would back up data online and ensure the depository functioning under force majeure circumstances.   MFS chairman of the board Mykola Shvetsov told Interfax/Ukraine that on Wednesday the MFS Depository was officially donated service and network equipment by USAID’s Capital Markets Project. MFS chairman further said that the backup office components were: fiber line with the main office; 48 office positions; and a powerful backup generator that would help smooth away the problems the MFS faced due to unreliable supply of electricity in Kyiv.   Mr.  Shvetsov stressed that lack of the backup office had been a serious bar to depository activities and raised questions from foreign investors, especially so, pertaining to ensuring the performance of the recently commissioned PFTS “bid market.” MFS chairman valued the backup office establishment at 5 million UAH of which 3.2 million went to equip the office.   JSC MFS began in March 1997 and was granted depository license #1 at the yearend.  The depository was provided USAID TA under the Ukraine stock market infrastructure project implemented by PricewaterhouseCoopers.   In 2006 MFS increased its assets through services by 53.5% (126.1 billion UAH).  Its authorized capital is 4.365 million UAH.  Its largest shareholders are: PFTS (9.943%), First Ukrainian International Bank (6.25%), State Savings Bank of Ukraine (6.25%), Investment Company Business Invest (6.25%), Ukrsotsbank (5.97%), PryvatBank (5.97%), Morskyi Transportnyi Bank (5.68%). Until fall 2006 MFS was a sole Ukraine depository that provided commercial depository functions, and then license #2 was issued to the National Depository of Ukraine, controlled by the government, to provide those services.