“PrivatBank” for the day will suspend only corporate payments – the representative of the national Council of reforms

“PrivatBank” for the day will suspend only corporate payments – the representative of the national Council of reforms

© Privat

The financial institution becomes 100% property of the state.

“PrivatBank”, the decision to 100 percent nationalization which passed yesterday, December 18, late in the evening, on the day that it will suspend payments to corporate clients. This is caused by only technical aspects of change control procedures and legislation. Promise that service of physical persons will occur in normal mode.

“Clients “PrivatBank” used to do instant payments, so the news that bills came on the 19th, will be executed the 20th day of frustration. So, will stop for one day corporate payments. It has nothing to do with liquidity, nor with any other variables. It is a technical necessity, due to the procedure change control and features of the legislation”, – wrote in Facebook project Manager financial sector reforms project of the office of the National Council of reforms Victoria insurance.

The current law “On payment systems and funds transfer in Ukraine” provides that “interbank transfer is performed in up to three operating days. Interbank transfer is performed within the period prescribed internal regulatory acts of the Bank, but may not exceed two operational days”.

“So, “PrivatBank” even in the procedure of the change of control takes place in Ukraine (and the volume of such a Bank, perhaps, in Europe) provides a more rapid payments than provided by law. This was made possible thanks to the cooperation of the Bank’s management and authorized persons of the state,” said Strakhov.

We will remind, in the evening of 18 December , the government of Ukraine adopted a decision on nationalization of “PrivatBank”. It is assumed that the state represented by the Ministry of Finance of Ukraine will become the owner of 100% shares of the Bank. It ensures smooth functioning of the institution and preserve the funds of its clients.

“PrivatBank” will be headed by former Finance Minister and one of the top managers in the 1990-ies Oleksandr Shlapak.

PrivatBank was founded in 1992. Is considered a leader in the banking market of Ukraine. According to a study by GFK Ukraine in the third quarter of 2016, with the Bank cooperate 51.4% of Ukrainians – individuals over the age of 16. The main Bank I think, 42.6% of users of banking services to individuals, and more than the subsequent 23 banks together in the rating of Ukrainian banks.

With “PrivatBank” cooperate 56.1% of all legal entities in Ukraine, and 33.5 percent consider it their primary Bank. At the same time 69.7% of the entrepreneurs are also collaborating with the Bank, and of 62.3% consider it their primary Bank.

“PrivatBank” is one of the most innovative banks in the world, according to the website of the financial institution. For example, more than 10 years ago, the Bank became one of the first in the world who started to use SMS-disposable passwords. The latest innovation that has received worldwide recognition, are such products as payment mini-terminal, the entrance to Internet banking via QR code, online cash collection, and dozens of various mobile applications.

International banking group “PrivatBank” serves over 22 million corporate and retail customers in 10 countries.

In “PrivatBank” explained why he agreed to the nationalization.