What will happen to the money of Ukrainians in the nationalized “PrivatBank”. The responses from the Ministry of Finance and the NBU

The decision to 100 percent nationalization of financial institutions adopted in the late evening on December 18.

“PrivatBank”, the nationalization decision which the Cabinet adopted yesterday, December 18, late in the evening, will continue to operate as usual. There are just certain nuances with corporate clients.

On this day, December 19, at the morning press conference said the Finance Minister Oleksandr danylyuk. He stressed that “PrivatBank” continues to work as usual. Individuals will have uninterrupted access to their accounts, deposits, will be able to make payments and withdraw cash in ATMs and cash desks.

At the same time in a single day (19 December) will block wire transfers of legal entities that is associated with the nuances of the changes of ownership of “PrivatBank”.

See also: After the nationalization of “PrivatBank” sell – danyluk

OFFICIAL STATEMENT OF THE NATIONAL BANK AND THE MINISTRY OF FINANCE:

The Cabinet of Ministers of Ukraine at its meeting on 18 December 2016 took a decision on joining the state capital of PJSC “PrivatBank”. According to this solution, 100% of the shares will belong to the state represented by the Ministry of Finance. This guarantees the clients of the PJSC “PrivatBank” protection located in it capital and savings, will help to avoid systemic risks for the banking sector and will ensure the preservation of financial stability in the country.

This decision will protect more than 20 million citizens of Ukraine who keep money in the Bank and use its services. First of all we are talking about 3.2 million pensioners and 1.6 million other socially vulnerable segments of the population. They will have full access to their accounts.

Currently, the Bank operates in normal mode and fulfills its obligations to clients and partners.

The government was forced to take responsibility for the fate of “PrivatBank” and its clients prevent further problems. Unfortunately, the problems at the Bank have been accumulating for many years and has intensified in recent years. Their main reason was the non-weighted credit policy of the Bank, which led to the loss of Bank capital.

More than two years the national Bank has been working with a shareholder in the development and implementation of the plan of recapitalization. However, the plan was not implemented. The national Bank of Ukraine set for today that the total demand of “PrivatBank” in equity amounted to 148 billion.

The national Bank of Ukraine, aware of all these issues, the PJSC “PrivatBank” and given the importance of it as a Bank system for the health of the financial sector and the economy as a whole, could not wait any longer and took the Bank to category insolvent. Therefore, the regulator has appealed to the government to pass this systemically important Bank in public ownership.

The shareholders also capable to execute the recapitalization program, sent a letter to the Cabinet of Ministers of Ukraine with the request for entry in the state capital of PJSC “PrivatBank”. This letter to shareholders has undertaken to restructure the loans granted to legal entities by the Bank, subject to the requirements of the National Bank until July 1, 2017.

The transition of the PJSC “PrivatBank” to the state property will take place according to article 41.1 of the law of Ukraine “About system of guaranteeing deposits of individuals”.

“Compliance with legislation, regulations and plans of capitalization is fundamental for the sustainable development of banks and the financial stability of the country. The shareholders have not completed a program of capitalization, therefore, the national Bank of Ukraine, given the systemic importance of the Bank, initiated the entry of the state into the capital of Bank”, – said Chairman of the NBU Valery Gontareva.

Also read: will Give the “Privat 24” to the state. Gontareva told about the situation with the software

“Given the systemic importance of the largest in the state Bank decided to transfer the Bank into state ownership. This will allow you to save money vladykov and save the country’s financial system. The government allocates funds to stabilize the Bank – for this, the budget provides the necessary funds. While the budget will remain balanced. Budgetary parameters remain within the limits specified in the IMF program”, – said the Minister of Finance of Ukraine Alexander danyluk.

International financial organizations and financial market participants informed of developments.

The situation is under control, because of the PJSC “PrivatBank” is already controlled by the state. It operates in normal mode. Former management of the Bank agreed to facilitate the work of the crisis team.

The transition of “PrivatBank” to state ownership from private shareholders will be held in the framework of the special procedure provided for under article 41-1 of the law of Ukraine “About system of guaranteeing deposits of individuals”. In this regard, will change the Board and the Supervisory Board of “PrivatBank”. Other changes to the Bank’s work will not take place. All branches of the Bank and its employees will work in the future.

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.

Comments

comments