Ukraine Nationalized Nations Largest Private Bank ‘Private Bank’ PrivatBank, Ukraine’s largest private bank, was nationalized by the Government of Ukriane on December 18, after being declared insolvent by the National Bank of Ukraine. The Ukrainian government will now acquire the 100 per cent ownership of PrivatBank and will allocate funds to stabilise the bank to guarante uninterrupted
functioning of the institution and the safety of its clients’ money. Ukraine’s former finance minister Oleksandr Shlapak will take over as president of the bank. The National Bank of Ukraine stated that the bank saw a capital shortfall of about $5.65bn brought by irresponsible lending and related capital losses and about 97% of its corporate loans had gone to companies linked to its shareholders. The bank’s major shareholder, Ihor Kolomoyskyi, agreed with the nationalizing. The takeover of the nation’s largest bank marks a crucial move in ensuring stability for the country’s future, as a crisis in Privat Bank would have had far-reaching implications to Ukraine’s already struggling economy.
National Bank of Ukraine :
♦ National Bank of Ukraine is the central bank of Ukraine constructed between 1902 and 1934.
♦ Founded: 1992
♦ President: Valeriya Hontareva
Ukraine
♦ Capital: Kiev & Currency: Ukrainian hryvnia
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