The Cabinet resolved to fill the capital “PrivatBank” index government bonds to offset the currency position

Кабмин разрешил наполнить капитал "Приватбанка" индексными ОВГЗ для сбалансирования валютной позиции

The capitalization of “PrivatBank” will be implemented using both UAH domestic bonds Treasury bonds (t-bills), and index bonds, payments on which are tied to the rate of hryvnia to the dollar. The decision adopted by the Cabinet of Ministers of Ukraine at today’s meeting, reports “Interfax”.

“It is proposed to allow the Finance Ministry to carry out for the purposes of capitalization of “PrivatBank” issue bonds, including bonds with an index value of up to 64 billion UAH, ... to cover an unbalanced currency position of the Bank”, – commented on the decision, Finance Minister Oleksandr danylyuk during the meeting of the government.

Related news: the NBU has sent at PrivatBank UAH 10 billion for refinancing

He said that these bonds are also available for up to 15 years, but the interest rate will not exceed 6% per annum.

We will remind, on December 18, the government nationalized the PJSC “PrivatBank”. On 21 December, the Deposit guarantee Fund of natural persons and the Ministry of Finance of Ukraine signed a contract for the sale of 100% of shares of “PrivatBank: Ministry of Finance acquired 100% of the shares for one hryvnia. The decision explained the need, as the Bank was in a difficult position. International financial institutions supported this decision.

We will note, on Monday, December 19, after the announcement of the nationalization of “PrivatBank”, the Ukrainians removed about 2 billion of cash from ATMs of “PrivatBank”. Wednesday, December 21, the NBU reported that the volume of cash withdrawals from ATMs of “PrivatBank” caught up to the nationalization.

Related news: the NAB is investigating the manufacture of “PrivatBank” of abuse of the refinancing

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