The decision of Ukrainian authorities to nationalize PrivatBank is an important step in their efforts to safeguard financial stability, according to Christine Lagarde, Managing Director of the International Monetary Fund (IMF).
”Today`s decision of Ukrainian authorities to nationalize PrivatBank is an important step in their efforts to safeguard financial stability. This decision was taken to ensure the smooth operations of the bank given its systemic role in Ukraine`s financial system, and in view of insufficient efforts to strengthen its capital adequacy in recent months,” Lagarde said in a statement.
”Ensuring that all banks operating in Ukraine meet capital and regulatory requirements is essential to maintain public confidence in the banking system and reinforce the banks` ability to support productive activities necessary for the prosperity of the Ukrainian people,” she stressed.
”It is now important that the process of nationalization be followed by firm efforts to maximize the repayment of related-party loans, and the appointment of an independent management team to restore the bank`s viability, minimizing the cost to the state and taxpayers in line with existing legislation and international best practice.”
”The IMF will continue to support Ukraine in its efforts to build strong institutions, enhance transparency, and advance structural reforms which are critical to achieve strong and sustainable economic growth,” Lagarde said.
As UNIAN reported earlier, the Ukrainian Government at its meeting on Sunday supported the proposal of the NBU and the Council for Financial Stability to transfer PJSC PrivatBank to 100% state ownership.