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 US Ambassador Yovanovitch called Kolomoiskyi during negotiations on Privatbank nationalization, - media

Businessman and former Privatbank co-owner Ihor Kolomoiskyi had a conversation with U.S. Ambassador to Ukraine Marie Yovanovitch before he made the final decision on the bank nationalization.

As reported by Censor.NET, a source told LB.ua.

According to the source, it was quite a tough talk which became a "point of no return" in the process of Privatbank's transition from private to the state property.

Read more: Privatbank clients cashed 1B hryvnia over past day, same as in December 2015, - press service

Furthermore, the news outlet found out that a private agreement between the Finance Ministry and National Bank on the one hand and Privatbank's largest shareholders Kolomoiskyi and Boholiubov on the other hand stipulated for the ex-owners to fulfill their commitments to secure loans by pledged assets within six months and set off the losses of the state after that.

Read more: Privatbank stabilization was successful, - Board Chairman Shlapak

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 Danyliuk claims the bank was made insolvent and those guilty should be held accountable.

The Ministry of Finance will issue treasury bonds worth 116.8 billion hryvnia to refinance Privatbank. According to NBU Head Hontarieva, the amount will be attributed as a public debt.
 
 
 
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