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

The National Bank of Ukraine says Privatbank requires 116 billion hryvnia ($4.3 billion) in additional capitalization. Another 32 billion hryvnia might be written off as they relate to the bank's shareholders.

Privatbank's capital deficit will be attributed as public debt, Head of the National Bank of Ukraine (NBU) Valeriia Hontarieva said on air of Svoboda Slova talk show, Censor.NET reports citing Ukrinform.

"We suggest writing off 32 billion hryvnia - these are the money related to the bank's shareholders, not current deposit accounts. 116 billion hryvnia will be attributed as the national debt. The servicing of the public debt will be included in the budget," Hontarieva said.

Read more: Privatbank's liquidity bolstered with 15B hryvnia, - Rozhkova

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.

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