Board chairperson of the nationalized PrivatBank Oleksandr Shlapak says that the total of 97% of the loan portfolio of the bank had been allocated to associated persons.
He said this at the Tuesday briefing, Ukrainian News Agency reports.
"We have split that portfolio into four groups. The first group is formed of so-called transformed loans: 36 borrowers for almost UAH 133 billion principal and interest inclusive. The second group is leasing portfolio: 41 borrowers for almost UAH 15 billion. The third is the portfolio allocated in Cyprus. The fourth - loans associated with corporate clients of the bank for over UAH 36 billion," the board chairperson said.
All those loans have a number of common elements: the most part of the borrowers were newly founded companies with unsatisfactory financial state; the legislation was flagrantly violated during allocation of loans; the whole portfolio was serviced unsatisfactorily and the dynamics worsened; all the loans were allocated not at market rates; no security was ensured.
Shlapak added that there were 223 borrowers of that sort owing PrivatBank UAH 198.4 billion.
Shlapak called transformed loans the top of the financial pyramid.
He said that most of the loans were allocated in October - November 2016 to the companies which by that time had operated only for less than a year.
The loans were allocated at 10.5% per annum.
No one checked their financial status.
Shlapak reminded that a bank cannot allocate loans at the rates lower than the ones it draws the funds in the market at.
As Ukrainian News Agency earlier reported, on December 21, PrivatBank was nationalized from then owners Ihor Kolomoiskyi and Hennadii Boholiubov.
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