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Revers in nationalization of PrivatBank threats relations with IMF, crisis, default, - Poroshenko

According to the President of Ukraine, the IMF will respond to any attempts to undermine the independence of the NBU in a hard way
14:19, 15 April 2019

The President of Ukraine Petro Poroshenko
Presidential Administration press office

The attempt of the privatization of the Privat Bank, which was earlier nationalized, can lead to new economic crises and default as 112 Ukraine reported citing President of Ukraine Petro Poroshenko.

“The reverse (in the nationalization of PrivatBank, - 112.international) will cause the deep crisis in the relations with the IMF with the relevant risks for the macroeconomic stability, for a course and possibly can lead to the new crisis. We cannot allow the return of the threat of the default; however, the ex-owner of Privat is fond of this idea, according to the interview. He says that the development in our country is impossible without default. But I emphasize, I do not like it and I have not been liked it for five years,” Poroshenko stated.

Related: Hague Court of Arbitration rules in favor of PrivatBank

Besides, the president noted that the millions of the Ukrainians also do not like the idea of the default.

“It is obvious that the IMF will respond to any attempts to undermine the independence of the NBU in a hard way. Some people already try to rule the NBU, to force chairman to leave his post and change the Board of Directors,” the president said.

The Finance Ministry stated that the privatization of the state banks should take place after the fulfillment of some conditions, particularly, the imposing of the new corporate governance and settlement of the problems.

Related: How could Ukraine sell PrivatBank profitably?

Earlier, Kolomoysky, the Ukrainian oligarch and former owner of Privatbank, demanded to give him back two billion U.S. dollars of the bank's assets. He might, in turn, give up this financial institution. 

The decision to nationalize Privatbank was made in December 2017. 100 percent of its shares were handed over to the state. The IMF supported that decision, stating that it's an important step to secure Ukraine's financial stability.

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