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 EBRD might take stake in Privatbank 'if all goes well,' - Reuters

The European Bank for Reconstruction and Development may become a Privatbank co-owner when its recapitalization is complete and everything is put to rights.

Censor.NET reports citing Reuters quoting Frances Malige, the EBRD's regional head that oversees Ukraine.

"When the time comes we are going to look at developing a relationship with the institution, meaning lending money or investing in equity," Malige said.

Read more: Nationalization of Privatbank will not affect inflation or hryvnia rate, - NBU Head Hontatieva

"If we are lucky we can start looking at that in 2017. If it goes well we may, but if not, it may be later," he added.

Earlier on Monday, the EBRD supported the nationalization of Privatbank.

On Dec. 18, the Cabinet of Ministers announced its decision to nationalize Privatbank, the largest privately-held bank of Ukraine. The government intends to issue 30-year domestic government loan notes worth 150 billion hryvnia ($5.54 billion) and become a 100-percent owner of the bank. The bank's first deputy CEO announced the decision was made after an unprecedented information attack on the bank and a threat it posed to its clients. The bank's leadership assured the clients their savings will be safe, naming it the key condition in the talks. In his turn, Minister of Finance Oleksandr Danyliuk confirmed the clients' money will be safe and protected by the state. Due to the nationalization procedure, Privatbank halted corporate transactions for one day, till 9 a.m. Dec. 20.

According to the National Bank of Ukraine, Privatbank needs 148 billion hryvnia in additional capitalization. The finance minister said that after Privatbank is stabilized, the state plans to sell it. In turn, President Poroshenko said the state guarantees safety and integrity of the client's funds.
   
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