Economy 2023-12-15T10:08:14+02:00
Ukrainian news
NBU Eyeing Giving 5-10 Years To Former Shareholders Of PrivatBank For Redemption Of Debts

NBU Eyeing Giving 5-10 Years To Former Shareholders Of PrivatBank For Redemption Of Debts

NBU, PrivatBank, Valeriya Hontareva, National Bank of Ukraine, shareholders, redemption, debts

Valeriya Hontareva, the Governor of the National Bank of Ukraine, says the central bank may give 5-10 years to former shareholders of PrivatBank for redemption of debts.

NBU Governor Valeria Hontareva said this in an interview for Reuters, Ukrainian News Agency reports.

She says the new management of PrivatBank has hired Ernst & Young for an independent audit.

An international company has been selected to manage the troubled portfolio in compliance with an agreement with the International Monetary Fund, she says.

According to the governor of the central bank, by the end of the first half of 2017 auditors will verify if the companies that took loans from PrivatBank are able to return the money they owe to the nationalized bank within 5-10 years.

According to her, if this is not possible, it will show that the loans given to corporations related to PrivatBank made it insolvent.

"This will be a matter for our law enforcement agencies and the bank will lodge lawsuits," she said when asked about responsibility of former shareholders.

She says the central bank thinks how to resolve the problem of non-performing loans in the banking sector, as the share of non-performing loans has risen to 50% over the past few years due to the economic crisis and the hryvnia devaluation.

As Ukrainian News Agency earlier reported, PrivatBank is 100% owned by the State.

PrivatBank's former shareholders committed to have restructured corporate entities' loans before July 2017.

Ihor Kolomoiskyi and Hennadii Boholiubov controlled PrivatBank before its nationalization in December 2016.