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 "This will make banking sector stronger and more resilient", - G7 Ambassadors' statement on Privatbank nationalization

The G7 Ambassadors believe the nationalization of Ukrainian Privatbank was the right step.

Censor.NET reports citing the statement of the G7 Ambassadors on nationalization of the Privatbank.

The statement reads: "We recognize and applaud the leadership of the governor of the National Bank of Ukraine, the Prime Minister, the Minister of Finance and the President for their continued efforts to clean up the banking sector and stabilize the economy.

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"The Government's decision to nationalize Privatbank is an important and necessary step in this process, and it will help ensure that all banks in Ukraine are held to the same prudential regulatory standards. This will make the banking sector stronger and more resilient. This nationalization is also a means for the Government of Ukraine to safeguard deposits of household and legitimate businesses and to facilitate uninterrupted access to banking services for Privatbank's client base.

"Ukraine's banking sector clean-up is a vital component of its larger reform efforts. We look forward to continuing to support Ukraine and working together to promote macroeconomic and financial stability, improve the investment climate, and help the Ukrainian people continue on a path toward economic prosperity," the G7 Ambassadors wrote.

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

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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