The Domino principle. The bankruptcy of “PrivatBank” would lead to the “bursting” of other banks – NBU

The Domino principle. The bankruptcy of “PrivatBank” would lead to the “bursting” of other banks – NBU


The business could lose 85 billion, and investors would return 95 billion.

In case of a possible announcement of “PrivatBank” bankrupt Ukrainian economy would have waited for the disaster. Domino “burst” to other banks, the business would have lost 85 billion, and the Fund of guaranteeing deposits of natural persons would have to return to investors 95 billion. So I decided to keep it and to nationalize.

In an interview with “UKRINFORM” said the Deputy Chairman of the national Bank Oleg Churiy.

“It would be a catastrophic loss to the public, business and government too. Reimbursement from the Fund of guaranteeing deposits in the Bank amounted to 95 billion. It is slightly smaller than the cap (116 billion). It would be a disaster and is not confined to one Bank,” said CORI about the consequences of the nationalization of the alternative option to “PrivatBank”.

We will remind, on the nationalization of “PrivatBank” became known late on Sunday evening, December 18. Wednesday, December 21, the financial institution officially became a state property. The Ministry of Finance bought “PrivatBank” Deposit guarantee Fund of natural persons for a symbolic one hryvnia.

The transition period lasted for 72 hours. Monday, December 19, the head of the NBU Valeria Gontareva said that “Privat” is classified as insolvent. According to her, the Bank’s capital deficit was 116 billion UAH, and 97% of the corporate loan portfolio was distributed to companies related to shareholders. This “hole”, the state plans to close the bond issue Treasury bonds. The first tranche of securities of 43 billion UAH will be released before the end of the year.