Delivered Kolomoisky headache: How the AP agreed on the nationalization of “PrivatBank”

Избавили Коломойского от головной боли: Как в АП договаривались о национализации "ПриватБанка"

“PrivatBank”: the path to nationalization

Talks about the nationalization of the “PrivatBank” has started 2015 Then now a quick MP Oleksandr Onishchenko has submitted to Parliament a bill on the nationalization of financial institutions. The legislative initiative has not received support of deputies. Instead, the Bank with the necessary stable refinancing from the national Bank, which amounted to billions of hryvnia. Moreover, the Central Bank was willing to meet the wishes of the Bank’s shareholders and provided installments for repayment of debts on refinancing, and not denied in the new refinancing. And this despite the fact that it was already known about the significant proportion of insider loans (loans associated with the Bank’s shareholders structure – ed.). According to official data, the share of insider loans in the portfolio of a financial institution is under 20%. Informally referred to as figure to 80%.

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Meanwhile, the fate of “PrivatBank” at approximately the same time actively interested in the IMF, which insisted on supporting systemic banks, and in the updated Memorandum of lending to Ukraine in an extreme measure provided for the nationalisation of “PrivatBank” in the case until the first quarter of 2017, the owners do not invest in the Bank billions of hryvnia. And, it seemed, the process goes on. In a press-service of the Bank announced the implementation of a plan of recapitalization, and the IMF were regularly dispatched reports that the plan to recapitalize financial institutions succeeds.

A new round of negotiations on the nationalization came in the summer of this year. According to sources close to the President of Ukraine Petro Poroshenko, the transfer of the largest Bank in the state property was discussed during a meeting of the President with businessman Igor Kolomoisky on the island of Capri.

“Shareholders “Private” nedvuznachno hinted that, in accordance with the law, the owner is liable with its property in case of problems with the Bank… After that the active phase of negotiations began,” say interviewees, adding that “Private” has asked for additional funds to support the state.

According to sources the Cabinet, during the talks it was expected that the state will receive a controlling stake in the largest Bank of the country.

“It was planned that the state will transmit from 51 to 68% of its shares. Instead Kolomoisky promised to partially forgive the debts on loans to their companies” – say our interlocutors, stressing that the NBU did not interfere with the withdrawal of assets.

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As of the middle of last week this proposal was supported by Igor Kolomoisky, however, strongly opposed by his partner Gennady Bogolyubov.

“Bogolyubov said that the loans were mainly taken Kolomoisky, because he does not have to answer to the same extent,” noted the sources close to the former head of Dnipropetrovsk regional state administration.

However, as we know, on Sunday evening following the meetings of the NSDC and the Cabinet of Ministers adopted a decision on nationalization of financial institutions. According to sources in the “Block of Petro Poroshenko”, the decisive factor that influenced the nationalization, was the position of the International monetary Fund.

“The IMF has put the question squarely on the implementation of the plan of recapitalization “PrivatBank” in the first quarter of 2017, It is assumed, among other things, substantial payments to the insider loans,” say interviewees, adding that the owners, by contrast, asked for a deferment. With the same assumption about the capital increase made informally, and the EBRD.

Related news: IMF approves: Statement by Christine Lagarde on the occasion of the nationalization of “PrivatBank”

This is indirectly confirmed by today’s statement by Finance Minister Alexander danyluk, who noted that the nationalization of “PrivatBank” will bring the official Kiev the next tranche of the IMF loan.

Another reason for the call on the sidelines of the cooperation group “Privat” and the leader of “Batkivshchyna” Yulia Tymoshenko. It should be noted that today during the conciliatory Council of Parliament she criticized the work of the NBU, accusing once again the bankopada of the President of Ukraine Petro Poroshenko.

Monday morning was announced and the price of nationalization. According to Finance Minister Alexander danyluk, the government plans to infuse capital of the Bank to 150 billion UAH. The official noted that the agreement provides participation of shareholders in solving the debt problems of the Bank.

“PrivatBank” – state. What’s next

So, the country’s biggest Bank came under the control of the state. The Ministry of Finance has already announced the update management “PrivatBank”, noting that the Supervisory Council will include representatives of international organizations. However, while the current Chairman of the Board Alexander Dubilet retained his post.

News on topic: the Nationalization of “PrivatBank” in totoaba

At the same time, Finance Minister Alexander danyluk was at the briefing said that after the financial stabilization of the Bank will be sold. However, the number of applicants did not specify. However, while on financial stability to say, at least, premature. According to Alexander Dubilet, people per day from the card removed 2 billion UAH. In addition, part of the Bank’s customers moved to be served in banks-competitors.

According to sources in the presidential Administration, during the negotiations they discussed the option of return of the Bank Kolomoisky.

“Kolomoisky got rid of a toxic asset. He may return after decapitalizing at our expense and get rid of bad debts”, – say our interlocutors.

Igor Roman