There are no legal mechanisms for denationalizing PrivatBank (Kyiv) in Ukraine, in particular because of the need to withdraw state funds from the financial institution’s capital and its further capitalization for the appropriate amount by ex-owners, First Deputy Head of the National Bank of Ukraine (NBU) Yekateryna Rozhkova has said.
“We have no understanding today, and there is no procedure in the legislation, how this can happen [the denationalization of PrivatBank]. But even if we imagine that it will be 100 percent restitution [full financial compensation], then state capital should be withdrawn from the bank and PrivatBank will come out again without capital, and we will again need to make a decision on it,” she said.
Rozhkova noted that the decision on nationalization was made by the Cabinet of Ministers and the National Security and Defense Council of Ukraine on the basis of the NBU decision on PrivatBank’s insolvency to avoid destabilization of the financial sector.
She said the decree on recognizing PrivatBank insolvent was based on the fact that the bank required substantial recapitalization, it lost liquidity and had unpaid debts.
“If to talk about the possibility of cancellation of the decision on the insolvency of PrivatBank, we do not have grounds for this,” the banker stated.
