: :inin Kyiv (EET)

Finance Ministry gains control over 100% shares of PrivatBank

On December 21, 2016, an agreement for the sale of 100% of the shares in PJSC PrivatBank was signed between the Deposit Guarantee Fund (DGF) and the Ministry of Finance.

From the date of transfer, the owner of a 100% stake in the bank is the State represented by the Ministry of Finance of Ukraine, according to a press release of the DGF.

”Such result is a consequence of coordinated actions of the Ministry of Finance of Ukraine, the National Bank of Ukraine, the Deposit Guarantee Fund, the National Commission on Securities and Stock Market, the National Depository of JSB Ukrgasbank, JSC Ukreximbank,” the report says.

It is noted that the function of the Guarantee Fund in this process was the establishment of control over the bank, its preparation for the transfer to state ownership and ensuring the transfer to the new owner.

”About 80 experts on the part of the Deposit Guarantee Fund provided successful execution of these tasks. They worked directly at the Head Office of the bank and its branches, including in Cyprus. There were also 50 employees of the Fund, who supported the efforts remotely,” the DGF said.

The Deposit Guarantee Fund also recalled that reserves for active transactions were formed during 72 hours, an additional issue of shares was carried out, and its public offering was provided. Changes were made in the bank`s Charter, the transitional balance sheet was formed, and all the necessary procedures for the sale of shares and the change of the bank`s owners were carried out.

”The State`s entering in the capital of PJSC PrivatBank and further additional capitalization of the bank will ensure the fulfillment of all obligations to the bank`s clients — both physical and legal persons — with the preservation of foreign currency deposits and other conditions of the concluded contracts,” the DGF said.

Earlier, the Cabinet of Ministers at its extraordinary meeting on Sunday, December 18, decided to transfer PrivatBank to 100% state ownership. The decision was made based on the results of the meeting of the National Security and Defense Council on the proposal of the National Bank of Ukraine.

Minister of Finance Oleksandr Danyliuk pointed out that PrivatBank would continue its operations as usual, and the new management team will be formed in the coming days. At the same time, he noted that the bank`s capital increase would take place in several stages. The maximum amount of capital increase would be UAH 148 billion, while the minimum amount would be no less than UAH 116 billion.

Also, Deputy Head of the NBU Yakov Smoliy said that the decision to nationalize PrivatBank had not affected the banking system and posed no significant threats to the financial stability of the State.


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