"PrivatBank" nationalization is an important step to ensure financial stability in Ukraine. This was stated by the Managing Director of the International Monetary Fund (IMF), Christine Lagarde, circulated by the IMF press service.
"Today's decision of the Ukrainian authorities to nationalize PrivatBank is an important step in its efforts to ensure financial stability. This decision was taken in order to guarantee the reliability of the bank's operations, given its systemic role in the Ukrainian financial system and given the lack of effort in recent months to strengthen the adequacy of its own capital. Ensuring compliance by all banks, that operate in Ukraine, of the regulatory requirements and capital requirements is crucial for the support of public confidence in the banking system and the strengthening of banks' ability to maintain productive actions necessary for the welfare of the people of Ukraine," it was said in a statement.
As it was pointed out by Lagarde, it is now important that the nationalization process was supported by determined effort to maximize the return of loans which had been granted to related parties, and the appointment of an independent management team to "bring back the stability of the bank and to minimize the costs of the state and taxpayers in accordance with the law and best international practices."
"The IMF will continue to support Ukraine in its efforts to build strong institutions, increase transparency and ensure the development of structural reforms, which are critically important for strong and sustainable economic growth," Lagarde said.
As it was reported earlier, Ukrainian government decided to nationalize the biggest bank "PrivatBank".