The supervisory board of PrivatBank (Kyiv) has approved a decision of the board of directors to create the 100% reserve for the debt of 10 foreign companies-borrowers for the amount of over $272.3 million, including $196 million of the principal of the loans and interest of $75 million.

"Considering significant outstanding amounts under the loan agreements, and the fact that the repayment of the indebtedness that was to take place in the course of compliance by ex-UBOs [ultimate beneficial owners] with their commitment to bring the bank's capital up to the regulatory requirements was not executed… PrivatBank has addressed the Prosecutor General's Office of Ukraine with a petition on criminal offence in view of recovery of the financial damage to PrivatBank," the bank said in a statement on Tuesday.

The bank said that the bank has to cover losses of prior periods equal to UAH 5.9 billion and book 100% loan loss provisions in September 2018 at the expense of its operating income.

As reported, on December 18, 2016 the government at the suggestion of the National Bank of Ukraine and the shareholders of PrivatBank, the largest of whom at the time were Ihor Kolomoisky and Hennadiy Boholiubov, decided to nationalize this largest financial institution in the Ukrainian market.

Kolomoisky and Boholiubov in a letter to Prime Minister Volodymyr Groysman dated December 16, 2016, asking them to purchase the bank's shares and take a positive decision on its further capitalization, have committed themselves to restructuring the loans attracted through affiliated persons from the bank before July 1, 2017. This period could be extended until January 1, 2018 in the event of restructuring until July 1, 2017, 75% of the principal amount of the respective loans.