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Ex-owner of PrivatBank comments on the nationalizaton of his bank
09:19, 23 December 2016
Ex-owner of PrivatBank comments on the nationalizaton of his bank

Businessman Ihor Kolomoisky, one of the former stockholders in Ukraine's No. 1 PrivatBank, has issued a comment on the bank's recent nationalization

09:19, 23 December 2016

Open source

The businessman Ihor Kolomoisky told how the National Bank of Ukraine finally “sqeezed” the bank. 112.international publishes his explanation of the situation without changes.

"In this difficult time for the former shareholders, I would like to share a brief comment on the nationalization of PrivatBank, articulated in the three theses.

1. I would like to thank the Cabinet of Ministers and particularly [Prime Minister] Volodymyr Groysman.

As you know, in the wake of the latest wave of panic among clients, provoked primarily by the activity of the NBU [the National Bank of Ukraine], we were forced to come up to the Cabinet with the proposal that PrivatBank should be taken over by the state. I think that the Prime Minister and his team have shown real courage by taking this difficult decision. If they had not taken this step, this would have jeopardized the entire financial system of Ukraine.

Related: S&P downgrades PrivatBank credit ratings

2. PrivatBank has fallen victim to the NBU's arbitrariness.

PrivatBank had a well-balanced, secured loan portfolio, verified by an international audit. But the NBU, by constantly changing its own regulations, invented new and different ways to artificially reduce the bank's capitalization.

Then they began to talk about a mythical gap of UAH 150 billion, 97% of related party loans, about the fact that all the money had been stolen or siphoned off into the tax havens. Yet, these were the figures they received as a result of free changing of the accounting policy. Good central banks would help banks amid such hardships as an economic crisis, war or occupation. But our regulator has utilized all methods at hand to make PrivatBank go broke. And, unfortunately, they have succeeded.

3. The most important thing is that the bank's clients have not been affected by the decision.

No matter how hard and bitter it was, we kept in mind throughout all the negotiations that the most important thing is PrivatBank's clientele. It's ridiculous to hear statements alleging that Kolomoisky had been blackmailing, threatening someone with PrivatBank's collapse. We had been defending our bank to the last, to the very moment we saw this could pose a threat to the clients. As for the rest, history will put everything in its place.

Related: Kyiv developer creates Chrome plugin blocking Facebook posts about PrivatBank

Well, and to end on a positive note, I will express hope that the new shareholder represented by the state and the new board chaired by Mr. [Oleksandr] Shlapak will comply with the benchmark set by PrivatBank, find common language with all the clients of the bank, maintain and raise its high standards. I hope that the new management will be able not only to mark the bank's 25th anniversary at a worthy level, but also to lay the foundation for the celebration of its semi-centenary anniversary

I thank you for your attention."

The text was originally published on UNIAN

As it was reported earlier, Ukrainian government nationalized PrivatBank at the beginning of the week, the biggest Ukrainian bank. The Cabinet of Ministers made a late Sunday announcement on their official website hat the Ukrainian government acquired 100 percent of shares of PrivatBank.

The Head of the National Bank of Ukraine Valeriya Hontareva announced that this is not going to affect the inflation and the currency rates. According to her the regulating authority has the resource to insure currency from fluctuation.

Related: What does PrivatBank nationalization mean to Ukrainians and state?

Finance Minister Oleksandr Danyliuk assured that the bank clients will have unhindered access to their accounts and ATMs.

Apart from that, the decision on nationalization will Ukraine push closer to receiving the next IMF tranche.

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