Economy 2023-11-15T10:25:26+02:00
Ukrainian news
NBU Declares PrivatBank Insolvent

NBU Declares PrivatBank Insolvent

NBU, insolvent, PrivatBank, nationalisation, PrivatBank nationalisation

The National Bank of Ukraine (NBU) has declared PrivatBank insolvent.

Ukrainian News Agency has seen a joint statement by the National Bank and the Ministry of Finance.

“Realising PrivatBank’s problems and taking into account its significance as a systemically important bank for the health of the financial sector and the nation's economy in general, the National Bank could wait no longer and declared the bank insolvent,” it reads.

PrivatBank’s overall capital of additional capital is round UAH 148 billion.

The bank shareholders were unable to accomplish the increase of the financial institution’s capital.

They addressed the Cabinet of Ministers in a letter with a request that the government buys into PrivatBank.

The transfer of ownership of the bank to the State will be in line with article 41.1 of the Law on the Deposit Guarantee System which sets out transfer of a bank into government ownership.

As Ukrainian News Agency earlier reported, the Cabinet of Ministers on December 18 decided to issue UAH 150 billion in domestic-loan government bonds for the increase PrivatBank’s capital with a result that 100% of the financial institution shall be transferred into public ownership.

Then, the Cabinet decided to nationalise PrivatBank and to appoint former Minister of Finance Oleksandr Shlapak as its Chairman of the Board.