As of today the Ukrainian government own 100 percent of the shares from PrivatBank, after its Cabinet of Ministers approved a request made by the National Bank of Ukraine to place what is the largest deposit holder in the country under temporary administration.

What will be a long and complicated nationalizing process started with the controlling shares being transferred to the state.

PrivatBank, with 20 percent of the sector’s 53 billion dollars in assets, is the biggest bank in Ukraine. It has its shares of problems as there is 3,39 billion dollars debts in their books from unpaid insider loans. However, the bank said, that is only 10 percent of the loans that the bank is set to recapitalize to meet central bank requirements.

According to NBU Governor Valeriya Gontareva the clients are safe now that their deposits are “guaranteed by the state.”

Former Finance Minister Oleksandr Shlapak is to be named the new president of PrivatBank, which is the first move in the replacement of the current management.

“The bank continues to operate. All the ATMs will have enough cash,” said Gontareva.

What trigger this nationalization is reported to be PrivatBank’s credit portfolio, which was plagued with 80 percent insider loans.

A former NBU official, Oleksandr Zavadetsky , who was the leader of the first ever insider lending monitoring office,  said that during a November 2015 diagnostic investigation it was revealed for the first time to the government the depth of the problem. “The insider loans diagnostic on PrivatBank showed results that nobody expected to see”, he said to the Kyiv Post. “It caused real anxiety among everyone.”

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