The National Bank of Ukraine (NBU) is ready to nationalize PrivatBank a second time if a court ruled to annul a respective decision. The First Deputy NBU Governor Kateryna Rozhkova has said in an interview with Reuters.
According to Rozhkova, the reversing nationalization of PrivatBank will derail the International Monetary Fund’s program of financial assistance to Ukraine for USD 3.9 billion and will undermine investor confidence. In addition, she said reversing the nationalization would reverse the mechanism by which the state handed the bank UAH 155 billion to rescue it from insolvency. As a result, the bank will be left without capital.
“We, as a regulator of the financial sector, will make a decision in accordance with the law: Article 56 of the law tells us that we must declare such a bank insolvent,” she said.
Accordingly, this would mean either liquidating the bank or taking it back into state ownership. At the same time, Rozhkova noted that re-nationalization would be preferable given its role in the economy.
As The Journalist reported, court rejects NBU’s appeal in favor of PrivatBank’s former shareholders.
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