The auditors confirmed the poor quality of the loans Privat

Аудиторы подтвердили плохое качество кредитов Привата

The auditors are confident that the problems PrivatBank started long ago

At the beginning of 2017, the negative balance totaled 882 million.

The independent auditor PJSC CB PrivatBank confirmed the low quality of the loan portfolio of the Bank. At the beginning of 2017, the negative balance totaled 882 million. About it reports a press-service of the NBU.

“According to financial statements of enterprises as of 31 December 2016, confirmed by the auditors of EY in 2016 allowances for impairment of loans to legal entities increased by 155,9 billion UAH”, – stated in the message.

Moreover, the auditors identified the need for the additional reserve should be increased by another 10 billion UAH, which led to the negative value of the balance capital of PJSC CB PrivatBank in UAH 882 million as at the end of 2016. The auditor confirmed the financial results and cash flows of the Bank due to the fact that he could not obtain sufficient audit evidence about the period in which there was a depreciation of loans and advances to customers. This conclusion suggests that the financial problems in PJSC CB PrivatBank began long before 2016. The requirement of article 41 of the law of Ukraine “About system of guaranteeing deposits of individuals,” auditor EY performed analysis of requirements for Bank capital.

The results of this analysis, it was determined that the Bank will need additional capital injection from the state, as a consequence of the actions of the previous owners and management.

As reported, on 26 June, the Chairman of the Board of PrivatBank Oleksandr Shlapak has resigned.

On June 23, Finance Minister Alexander danyluk said that the Cabinet of Ministers decided to dokapitalizatsii Privat 38.5 billion UAH.

June 16, media reported that nationalized PrivatBank is in need of recapitalization in the amount of 38.5 billion UAH.

Earlier, Finance Minister Alexander Danilyuk declared that after full nationalization of the PrivatBank his plan to sell.

 

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