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 Privatbank becomes formally public tomorrow, final charter registration underway in Dnipro City, - National Bank

The Ukrainian government is going to become the sole shareholder of Privatbank on Dec. 21.

Privatbank will become state-owned tomorrow, Dec. 21, National Bank of Ukraine (NBU) Board Deputy Chairperson Kateryna Rozhkova told a briefing, Censor.NET reports citing 112 Ukraine TV channel.

Read more: Privatbank partially freezes corporate accounts as interim measure

"The National Bank has completed registration of Privatbank's charter, which makes it possible to transfer the shares to the Finance Ministry today. Therefore, Privatbank will become completely state-owned and will have new management tomorrow morning. The charter was sent to Dnipro City to complete the state registration," she said.

Read more: Privatbank may be put up for sale in six months, - Minister Danyliuk

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.

Read more: 116B hryvnia needed for additional capitalization on Privatbank will be attributed as public debt, - NBU Head Hontarieva

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.

On Dec. 19, the National Bank of Ukraine allocated 15 billion hryvnia to maintain the liquidity of Privatbank.

The decision on the Privatbank nationalization has been supported by IMF, EBRD, the G7 countries, the EU and the U.S.

Minister of Finance Oleksandr Danyliuk claims the bank was made insolvent and those guilty should be held accountable.

   
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