PrivatBank officially sold to Ukraine for one hryvnia

The Deposit guarantee Fund of individuals (fgvfl) and the Ministry of Finance of Ukraine signed on 21 December, the contract for the sale of 100% of PrivatBank, said in a press release published on the website of the Fund.

The transaction price of one hryvnia.

“Since the capital PrivatBank acquired a negative value, the Deposit guarantee Fund, according to the law of Ukraine “About system of guaranteeing deposits of individuals”, sold shares of this Bank to the Ministry of Finance in full for one hryvnia,” − said the press service of the Fund.

The message also stated that all necessary procedures were carried out for 72 hours: the provisions formed for active operations, carried out additional issue of shares and secured their placement, changes in the Charter of the Bank, formed a transitional balance is conducted all the necessary procedures for the sale of shares and change of ownership of the Bank.

Rumors about the impending privatization of Ukraine’s largest Bank, depositors of which are about 20 million people, appeared in the fall of 2016, but the Bank denied this possibility. On December 16, the press-Secretary of the credit organization Oleg Serga said that the information about the nationalization PrivatBank “just taken from the ceiling”. He suggested that “publication (which published the material about the transition of PrivatBank to the state. — ) probably exciting ceiling.”

As previously wrote , the decision to nationalize Privat, the Ukrainian government announced on Monday night, December 19. As emphasized in the message of the Cabinet of Ministers, this was done on the “recommendation of the Council of national security and defense” in order to “stabilize the financial system”. The fate of the Bank the members of the Cabinet of Ministers decided at a meeting in the presidential administration of Ukraine.

The highest share of Bank owned by oligarch Igor Kolomoisky, the founder of the largest financial-industrial group “Privat” – 41,6%; the other major shareholder was Gennadiy Bogolyubov, whose share was 33.2%.

As was stated by the Chairman of the Central Bank of Ukraine Valeria Gontareva, a hole in the Bank’s balance sheet amounted to more than $5 billion, “More than 97% of the corporate portfolio, which amounted to 150 billion UAH on April 1, 2015, was credit-related shareholders of the company”, — said the head of the NBU. According to her, PrivatBank will be sold to new owners, but not earlier than after three years.