11:11 19.12.2016

Nationalization saves PrivatBank and entire Ukrainian banking system

1 min read
Nationalization saves PrivatBank and entire Ukrainian banking system

Ukrainian President Petro Poroshenko has said that the situation with PrivatBank (Dnipro) was not only a threat to itself, but to Ukraine's entire banking system.

"A threat to the bank and the whole Ukrainian banking system has appeared. It is obvious for us. Our key financial partners – IMF [International Monetary Fund], World Bank, EBRD [European Bank for Reconstruction and Development] and others – have expressed their serious alarm with this situation in the past six months," the president said in his address to Ukrainians.

The president said that the only way to save the bank and guarantee safety of funds of its clients is the bank's transfer to state ownership.

"The alternative would have looked irresponsible, as it would have meant to close the eyes, hide the heat in sand and wait until for the bank to fall," the head of state said.

Poroshenko said that this was the reason why recently the National Security and Defense Council, National Bank of Ukraine, Cabinet of Ministers and Finance Ministry all made formal, legal decisions for transferring PrivatBank to full state ownership.

"These decisions have saved the bank and the banking system," he said.

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