20.12.16 10:00

Privatbank's liquidity bolstered with 15B hryvnia, - Rozhkova

On Monday, Dec. 19, the National Bank of Ukraine allocated 15 billion hryvnia ($551.988 million) to Privatbank to maintain its liquidity.

NBU Deputy Head Kateryna Rozhkova said on air of 112 Ukraine, Censor.NET reports.

"We have boosted the bank's liquidity with 15 billion hryvnia. Tomorrow, the bank will ensure ATM cash collection. All the clients with current or card accounts in Privatbank will be able to use them," she said.

Rozhkova added that the risk of panic in connection with the nationalization of Privatbank is minimized.

Read more: "Correct and courageous," - EBRD on decision to nationalize Privatbank

"Today, we have a transition day. There is no panic. The number of withdrawals is a bit higher than, say, two weeks ago. Nevertheless, the funds of individuals are available, the bank is operating, there are no lines. Due to timely measures, the banking system has backed us. People can use Privatbank cards to withdraw money at another banks' ATMs. This suggests that the risk of panic is minimized," Rozhkova explained.

According to her, the National Bank's key task is to prevent panic among the population.

Read more: "This will make banking sector stronger and more resilient", - G7 Ambassadors' statement on Privatbank nationalization

"Tomorrow, we plan to deal with legal entities. Our goal is to preserve public and business deposits, prevent any halt, make sure that everything is operating and there is no panic. It has been achieved to some extent and it was our main task," she concluded.

On Dec. 18, the Cabinet of Ministers announced its decision to nationalize Privatbank, the largest privately-held bank of Ukraine. The government intends to issue 30-year domestic government loan notes worth 150 billion hryvnia ($5.54 billion) and become a 100-percent owner of the bank. The bank's first deputy CEO announced the decision was made after an unprecedented information attack on the bank and a threat it posed to its clients. The bank's leadership assured the clients their savings will be safe, naming it the key condition in the talks. In his turn, Minister of Finance Oleksandr Danyliuk confirmed the clients' money will be safe and protected by the state. Due to the nationalization procedure, Privatbank halted corporate transactions for one day, till 9 a.m. Dec. 20.

According to the National Bank of Ukraine, Privatbank needs 148 billion hryvnia in additional capitalization. The finance minister said that after Privatbank is stabilized, the state plans to sell it. In turn, President Poroshenko said the state guarantees safety and integrity of the client's funds.
← Back to the section