Ukrainian President Petro Poroshenko said in a comment relating to the transition of PrivatBank to 100% state ownership that the State assumes responsibility and guarantees safety and integrity of funds to the clients of PrivatBank.
”Despite the fact that the case is related to the private banking institution, these decisions are not a private case. They are directly related to approximately half of the adult population of Ukraine – individuals who are clients of this bank. They also concern about 50% of all legal entities registered in Ukraine,” Petro Poroshenko said in a statement published by the presidential press service.
”Indirectly, the entire financial and economic situation in the country indirectly depends on the financial standing of this bank – that is how big or, as experts say, system-related, this bank is,” said the president.
”That is why it cannot be forced into the Procrustean bed of standard bank recovery technologies. Thus, we resort to an unprecedented decision – passing it into 100% state ownership,” Poroshenko said. ”The state assumes responsibility and guarantees safety and integrity of funds to the clients of PrivatBank.”
Poroshenko stressed: ”Our decision is based on saving the bank and guaranteeing property rights to financial resources to everyone who put money in this institution.”
He has added that the new owner is the state acting through the Ministry of Finance, and that a new ”group of top professionals has already been hired to manage the bank. The process of forming the group has been joined, inter alia, by the European Bank for Reconstruction and Development.”
”This team, the National Bank, and the Ministry of the Interior face the task to ensure gradual transition, stable functioning and service. First of all, new management must ensure uninterrupted service of socially vulnerable clients. I mean those who live hand-to-mouth, who receive pensions, scholarships, transfer money for treatment etc. But in general, nobody should suffer from the change of ownership. We`ve made this decision for every client to be protected and avoid problems. And for the money to be in greater safety than ever before,” the president said.
According to Poroshenko, to increase protection of PrivatBank depositors, he has submitted to the Verkhovna Rada an urgent bill that provides additional deposit insurance in this institution.
”They will be the same as for Oshchadbank, the bank which fully belongs to the state,” said Poroshenko.
The Head of State has called for PrivatBank customers to remain calm.