Ukraine's Finance Ministry announced in a statement, Censor.NET reports.
The ministry expects that in the near future the consortium of companies involved in further reorganization of the loans (Rothschild, EY, and FinPoint) will provide a final report. The ministry says the decision will be made based on the consortium's findings.
"There has been no significant progress in the reorganization; instead we see a coordinated legal and media campaign against the interests of the state," the statement reads.
"Having addressed the government with a request to transfer the bank to the state ownership, its former shareholders unilaterally pledged to facilitate the process of nationalization of the bank, commit no pressure on state authorities and the new management of the bank, not to impede the bank's activities in the future, and restructure the loan portfolio by July 1, 2017 to cover the losses of the state, "the Finance Ministry reminded.
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.
Scan copy from Finance Ministry website
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