The Sixth Administrative Court of Appeal dismissed the proceedings in the case of appealing the decisions of the state authorities on the withdrawal of PrivatBank from the market with the participation of the state and confirmed the impossibility of returning the bank to its former owners.
This is stated in the message of the National Bank of Ukraine (NBU), Ukrainian News Agency reports.
In particular, on November 15, 2023, the court canceled the decision of the District Administrative Court of the city of Kyiv from April 18, 2019, which satisfied the lawsuit of the former co-owner of PrivatBank, Ihor Kolomoiskyi, against the National Bank of Ukraine, the Cabinet of Ministers, the Deposit Guarantee Fund, the National Commission for Securities and Stock Market, by which the decision of the state authorities to withdraw the insolvent PrivatBank from the market with the participation of the state was declared illegal and annulled.
On December 18, 2016, the National Bank of Ukraine decided to recognize PrivatBank as insolvent and further withdraw it from the market with the participation of the state and turned to the government with a proposal to acquire ownership of the bank's shares.
This decision was based on reducing the amount of regulatory capital to a negative value. The shortfall in PrivatBank's capital was confirmed, in particular, by an independent internationally recognized auditing company.
The bank's shareholders did not fulfill their obligations regarding its financial recovery.
On the same day, the Cabinet of Ministers of Ukraine passed a decision on the state's entry into the capital of PrivatBank.
The transfer of PrivatBank into state ownership took place in accordance with Article 411 of the Law of Ukraine "On the System of Guaranteeing Deposits of Individuals".
This decision made it possible to avoid systemic risks for the banking sector and became a guarantee of maintaining financial stability in the country.
On April 18, 2019, the District Administrative Court of the city of Kyiv, based on the lawsuit of Ihor Kolomoiskyi, recognized as illegal and annulled the government's decision to withdraw the insolvent PrivatBank from the market with the participation of the state.
Passing this decision, the court ignored the need for recapitalization of PrivatBank established by the National Bank of Ukraine and the fact that PrivatBank and its shareholders did not implement the financial recovery program.
On May 24, 2019, the NBU filed an appeal.
On March 2, 2021, the Sixth Administrative Court of Appeal stopped the proceedings in the case until the Constitutional Court of Ukraine considers the case based on the lawsuit of 64 MPs regarding the constitutionality of certain provisions of the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of Banking Regulation Mechanisms" No. 590-IX.
On June 1, 2022, the Supreme Court canceled the decision to stop the proceedings in this case, which made it possible to continue the consideration of the case in the court of appeal.
As Ukrainian News Agency earlier reported, 100% of PrivatBank belongs to the state represented by the Ministry of Finance.
The management strategy of state banks envisages the sale of PrivatBank within 5 years.
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