Politics 2024-02-15T10:42:56+02:00
Ukrainian news
IMF Welcomes Nationalisation Of PrivatBank

IMF Welcomes Nationalisation Of PrivatBank

IMF, PrivatBank, nationalisation, Christine Lagarde

The International Monetary Fund (IMF) welcomes the decision to nationalise PrivatBank.

Ukrainian News Agency learned this from a statement made by the IMF Communications Department.

“Today’s decision of Ukrainian authorities to nationalize PrivatBank is an important step in their efforts to safeguard financial stability. This decision was taken to ensure the smooth operations of the bank given its systemic role in Ukraine’s financial system, and in view of insufficient efforts to strengthen its capital adequacy in recent months.

“Ensuring that all banks operating in Ukraine meet capital and regulatory requirements is essential to maintain public confidence in the banking system and reinforce the banks’ ability to support productive activities necessary for the prosperity of the Ukrainian people.

“It is now important that the process of nationalization be followed by firm efforts to maximize the repayment of related-party loans, and the appointment of an independent management team to restore the bank’s viability, minimizing the cost to the state and taxpayers in line with existing legislation and international best practice.

“The IMF will continue to support Ukraine in its efforts to build strong institutions, enhance transparency, and advance structural reforms which are critical to achieve strong and sustainable economic growth,” said IMF Managing Director Christine Lagarde.

As Ukrainian News Agency earlier reported, the Cabinet of Ministers on December 18 decided to nationalise PrivatBank.

The bank was taken into provisional administration on December 19 for three days.

After that the bank will be nationalised through conversion of the domestic-loan government bonds issued by the Ministry of Finance into the financial institution’s capital.

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