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You're reading: UPDATE: Government nationalizes PrivatBank, guarantees deposits
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The Ukrainian government acquired 100 percent of the shares of PrivatBank today, after the Cabinet of Ministers approved a request from the National Bank of Ukraine to place the country’s largest deposit holder under temporary administration, the Cabinet of Ministers said in a late Dec. 18 press release.

The bank’s controlling shares have been transferred to the state, starting a long and complicated nationalization process.

PrivatBank is the nation’s largest bank with 20 percent of the sector’s $53 billion in assets. It has been plagued by unpaid insider loans that left at least Hr 89 billion ($3.39 billion) hole in its ledger, the NBU reported on Dec. 13. The bank, however, has said that its insider loan portfolio amounts to only 10 percent of lending and that the bank is on schedule to recapitalize the institution to meet central bank requirements.

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It is time for Ukraine to restrict ownership of banks to 10% control of any individual or company, no one should have such control of key economic institutions! This situation demonstrates the folly of existing bank laws and the lower end of society always pays the bill for these wealthy people who abuse their power and position! and no Russian or Russian business or government should be allowed to own any percentage of any bank in Ukraine!

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