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

The now state-owned Privatbank can be put up for sale as early as in six months.

As reported by Censor.NET, this was announced by Minister of Finance Oleksandr Danyliuk on air of 24 Channel.

He suggests that the bank could be sold in six or nine months. The minister also noted a delay may occur over the unpreparedness of the market.

According to him, a team is being formed to draw up a bank development strategy to clean up all the "ineffectiveness and toxicity."

"We are going to make it more attractive for investors. The more clients it will have, the higher its price will be," Danyliuk said.

"If such a decision is made, the privatization will be carried out on market conditions. The government may decide to sell the bank by installments," he went on.

"Moreover, before announcing the sale, we must maximize its value and make it appealing. It is difficult to talk about specific dates," the minister added.

"The bank itself and the market must be ready for this. The EBRD will help us here - it is ready to invest in the bank and help improve its corporate governance," Danyliuk explained.

Read more: Privatbank partially freezes corporate accounts as interim measure

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.

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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