Managing Director of the International Monetary Fund (IMF) Christine Lagarde has welcomed the decision of the Ukrainian government and the National Bank of Ukraine on the nationalization of PrivatBank, the largest bank in the country, as it is an important step to ensure financial stability.
“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,” she said.
“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,” the banker said.
As reported, the government on the initiative of the National Bank and PrivatBank shareholders on Dec. 18 made the decision on the nationalization of the financial institution: the state will obtain 100 percent of the bank capital, while the issue of government domestic loan bonds for this purpose is estimated at Hr 116.8-148 billion.
