PrivatBank under State Protection

Transferring the ownership of a bank to the state is an emergency mechanism to support systemically important financial institutions as they go through the worst times in their histories. By taking ownership of PrivatBank, the state prevented its bankruptcy and liquidation.

The NBU spent two years working with the shareholder to implement the recapitalization plan. The NBU determined that PrivatBank had needed a capital increase of UAH 148 billion. Yet the Bank failed to implement the recapitalization plan. Thus, in view of the need for a significant recapitalization of the bank, which was reflected in the IMF Memorandum, the decision was made to rescue the bank, transfer control of the bank to the state, and implement the recapitalization plan.

To that end, on 18 December 2016, the Cabinet of Ministers of Ukraine adopted a decision (Resolution No. 961) to transfer the ownership of CB PrivatBank PJSC to the state.


“The bank and Ukraine’s entire banking system have been facing a direct threat to their existence. Over the past six months, our key financial partners – the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, and others – have expressed serious concerns over PrivatBank.

Thus, it is obvious that the only way to save the bank, and thus ensure the preservation the funds of its clients, is to transfer its full ownership to the state.”


“We have made this decision in order to ensure the stability of Ukraine’s banking system and to save people from losing money.

The situation around PrivatBank could have had extremely negative consequences for the Ukrainian economy. Through this decision, we have protected the bank’s nearly 20 million customers and the financial stability of our country.”


“Given the systemic importance of the country’s largest bank, a decision has been made to nationalize it. This measure will save the depositors’ funds and the country’s financial system. The government is allocating funds to stabilize the bank. The required amounts have been appropriated without creating a budget deficit. The state budget figures are in line with IMF requirements.”


“We are very pleased that the Cabinet of Ministers of Ukraine has supported our appeal and made a decision to transfer the full ownership of the bank to the state. This will enable Ukraine to guarantee to depositors the safety of their savings, and to businesses – the safety of their money. The nationalization will also remove threats to financial stability.

We are convinced that allowing the state to take ownership of the bank is the only way of safeguarding the funds of depositors and saving the financial system from collapse. By doing so, we are protecting more than 20 million of Ukrainian citizens who use the bank’s services and keep their money at the bank.”



23 December 2016

Minister of Finance Oleksandr Danyliuk presents the Supervisory Board of PrivatBank PJSC.

23 December 2016

The implementation of the resolution plan for PrivatBank PJSC is completed. On 22 December 2016, the provisional administration of PrivatBank PJSC was terminated and the provisional administrator authority delegated by the DGF was revoked from the authorized DGF officers.

22 December 2016

At a press briefing in PrivatBank’s office in Dnipro, the Minister of Finance of Ukraine Oleksandr Danyliuk introduces Oleksandr Shlapak as the new Chairperson of the Board.

21 December 2016

The Ministry of Finance reports that it signed an agreement with the Deposit Guarantee Fund on the sale of 100% of the shares of PrivatBank PJSC.

20 December 2016

The State Fiscal Service of Ukraine reports that it would not impose any fines on taxpayers due to possible disruptions in PrivatBank’s operation.

19 December 2016

The Deposit Guarantee Fund announces the commencement of the resolution of PrivatBank PJSC.

19 December 2016

The joint statement statement of the Ministry of Finance of Ukraine and the National Bank of Ukraine on the approval of the state’s participation in the capital of PrivatBank PJSC.

19 December 2016

The President of Ukraine signs Decree No. 560/2016 on the Decision of the National Security and Defense Council of Ukraine On Urgent Measures to Be Taken to Safeguard the National Economic Security of Ukraine and Ensure the Protection of Depositors' Interests dated 18 December 2016.

18 December 2016

The Cabinet of Ministers of Ukraine announces the transfer of 100% of PrivatBank’s shares into the ownership of the state and adopts the respective decision.

18 December 2016

The National Security and Defense Council of Ukraine adopts a decision on urgent measures to be taken to safeguard the national economic security of Ukraine and ensure the protection of depositors' interests.

21 December 2017

PrivatBank’s Supervisory Board decides to sign an agreement with one of Ukraine’s leading companies that is Rothschild’s partner in Ukraine to find buyers for PrivatBank’s shares in AS PrivatBank (Latvia), as well as to prepare and support this transaction.

20 December 2017

The NBU makes an announcement regarding the attempts of PrivatBank’s former shareholders to block Kroll’s activities.

19 December 2017

The High Court of Justice in England issues an order on the global seizure of over USD 2.5 billion assets of PrivatBank’s former owners Ihor Kolomoiskyi and Hennadii Boholiubov, as well as six companies they are believed to own or control.

29 November 2017

In December, the Finance Ministry of Ukraine completes the second stage of increasing PrivatBank’s capitalization by UAH 16.065 billion.

27 November 2017

PrivatBank’s Supervisory Board appoints its CFO Hanna Samarina as the Deputy Chairperson of the Board and submits the respective package of documents to the NBU for approval of this candidacy.

27 November 2017

The decision is adopted to appoint Galyna Pakhachuk as the First Deputy Chairperson of PrivatBank’s Board for the period from 1 December 2017 through 17 January 2022 and extend the period of her work as the Acting Chairperson of PrivatBank’s Board.

20 July 2017

PrivatBank’s Supervisory Board agrees to Oleksandr Shlapak's request to resign from the post of the Chairperson of the Board. Galyna Pakhachuk, a member of the Board, is appointed the acting Chairperson of PrivatBank’s Board.

18 July 2017

PrivatBank’s Supervisory Board choses McKinsey & Company Ukraine as the winner of a competitive selection among internationally recognized companies to lead the development of PrivatBank’s strategy.

12 July 2017

PrivatBank’s Supervisory Board choses a recruitment agency to find candidates for the Chairperson of the Board vacancy.

4 July 2017

The Chairperson of PrivatBank’s Board Oleksandr Shlapak holds a press conference where he reports the volume of PrivatBank’s toxic portfolio.

3 July 2017

The NBU comments on the status of the restructuring of PrivatBank’s loan portfolio by its former owners.

2 July 2017

The Ministry of Finance of Ukraine publishes the letter that was sent by PrivatBank’s former owners on 16 December 2016 to the government requesting the state to purchase PrivatBank’s shares.

26 June 2017

The Chairperson of PrivatBank’s Board Oleksandr Shlapak submits his resignation.

June 2017

The assessment of capital needs is completed. PrivatBank publishes its 2016 Annual Report (26.06.2017).

March 2017

EY started to provide audit services to PrivatBank.

January 2017

PrivatBank turns to EY for the assessment of capital needs (due diligence).

17 January 2017

The Minister of Finance Oleksandr Danyliuk presents Engin Akçakoca as the new Chairperson of the Supervisory Board.

18 December 2018

The NBU files a lawsuit against a former Privatbank shareholder Ihor Kolomoiskyi in Switzerland.

23 November 2018

The High Court in London grants permission for PrivatBank to appeal the first instance court’s decision on jurisdiction.

27 October 2018

Fitch has upgraded PrivatBank’s National Long-Term Rating to 'AA(ukr)' and affirmed its Long-Term Issuer Default Ratings (IDRs) at ‘B-’, with the Stable Outlooks.

18 October 2018

A court prevents a former shareholder of PrivatBank from blocking the operations of international advisers involved in an investigation into the financial activities of the former co-owners and involved in the legal support of the bank’s nationalization.

9 October 2018

PrivatBank generates 100% loss allowances for the USD 272.3 million debt of ten foreign borrowers, which arose prior to the nationalization.

8 October 2018

PrivatBank announces a competitive selection of companies to attract potential investors that would purchase shares in the Bukovel ski resort, the Dnipro football stadium, and other large assets.

18 September 2018

Over 6 million Ukrainians are users of Privat24 mobile banking.

13 September 2018

A court confirms the legality of the NBU’s decision to declare PrivatBank insolvent.

6 September 2018

PrivatBank launches Ukraine’s first Apple Pay service for mobile apps and online stores.

28 August 2018

The Supervisory Board of PrivatBank approves the new structure and composition of the Board.

31 July 2018

The High Court of Justice in London holds a five-day hearing on PrivatBank’s claim against Mr Kolomoiskyi and Mr Boholiubov, the bank’s former shareholders and officers, and six companies they are alleged to control.

4 July 2018

PrivatBank and UnionPay International sign a letter of intent laying the groundwork for the implementation of joint projects between the leader of Ukraine’s banking sector and the largest international payment system.

3 July 2018

The Supreme Court supports the NBU’s legal position with respect to PrivatBank fulfilling its obligations on the refinancing loans.

27 June 2018

The Ministry of Finance approves PrivatBank’s Development Strategy Until 2022.

11 June 2018

The NBU launches new legal proceedings in the Ukrainian courts against one of the former owners of PrivatBank, Ihor Kolomoiskyi.

27 April 2018

The Supervisory Board of PrivatBank approves the Annual Report and the Development Strategy for the period until 2022, which provides for the bank’s balanced development with a focus on the retail segment, SME lending, and, selectively, corporate segment, as well as preparing the bank for sale to foreign investors.

10 April 2018

S&P confirms PrivatBank’s long-term and short-term credit ratings with the stable outlooks.

2 April 2018

PrivatBank has filed lawsuits against PricewaterhouseCoopers (Cyprus) and PricewaterhouseCoopers (Ukraine).

9 March 2018

PrivatBank is declared the most profitable Ukrainian bank.

21 February 2018

The Cabinet of Ministers of Ukraine approves the updated Framework of Strategic Reform of the State Banking Sector. The framework provides for PrivatBank to focus its efforts on preserving its position in the retail business segment, particularly in the payments segment.

8 February 2018

The NBU Board approves the candidacy of Petr Krumphanzl for the post of Chairperson of PrivatBank’s Board.

16 January 2018

An independent investigation by Kroll confirms that PrivatBank was subjected to a large-scale and coordinated fraud, which resulted in the bank suffering a loss of at least USD 5.5 billion.

10 January 2018

PrivatBank’s Supervisory Board appoints Petr Krumphanzl as the Chairperson of the Board and submits to the NBU the documents for the approval of his candidacy.

9 October 2019

PrivatBank’s net profit has risen to UAH 27.4 billion in the first nine months of 2019.

8 October 2019

PrivatBank becomes the first state-owned bank whose supervisory board members were approved by the NBU.

13 September 2019

The Permanent Court of Arbitration has rejected the Russian Federation’s request to review jurisdiction issues and breached obligations in a proceeding initiated by PrivatBank.

12 September 2019

Since the beginning of 2019, PrivatBank has earned UAH 25.8 billion in net profit.

31 July 2019

Sharon Easky is appointed the Chairperson of PrivatBank’s Supervisory Board.

23 July 2019

PrivatBank’s profitability remains strong and will further improve – Moody's

22 July 2019

Fitch has affirmed PrivatBank’s ratings, with the Stable Outlooks.

18 July 2019

The Supreme Court does not permit the companies controlled by Ihor Kolomoiskyi to avoid responsibility to the NBU.

The government appoints three new members to the Supervisory Board of PrivatBank.

1 July 2019

Mariusz Kaczmarek joins the Board as the member responsible for operational matters.

26 June 2019

PrivatBank transfers to the state budget UAH 11.5 billion in dividends for 2018.

18 June 2019

Financial Stability Report: The PrivatBank litigation and a possible pause in cooperation with the IMF constitute key risks to the financial sector.

31 May 2019

PrivatBank’s former shareholder Ihor Kolomoiskyi attempts once again to block in the Ukrainian courts a lawsuit filed by the NBU in Switzerland.

24 May 2019

The NBU appeals both rulings of the District Administrative Court of Kyiv that declared unlawful the nationalization of PrivatBank.

23 May 2019

The Supervisory Board of PrivatBank gets three new members with international experience.

23 May 2019

CB PrivatBank PJSC initiates legal proceedings against its former owners and their close associates in the U.S.

18 April 2019

The NBU is getting ready to appeal the court ruling that overruled the decision on the nationalization of PrivatBank.

18 April 2019

The President of Ukraine convenes a meeting of the National Security and Defense Council of Ukraine on the risks and threats pertaining to the PrivatBank situation. He demands from the NSDC Secretary Oleksandr Turchynov to ensure clear coordination of all state authorities in order to prevent panic and protect the interests of the general public.

18 April 2019

The Ministry of Finance, the NBU, and PrivatBank publish a joint statement on the ruling of the District Administrative Court of Kyiv that declared unlawful and overruled the decision on the resolution of the insolvent CB PrivatBank PJSC with the participation of the state.

18 April 2019

In a lawsuit filed by a former PrivatBank’s shareholder Ihor Kolomoiskyi, the District Administrative Court of Kyiv rules, to declare unlawful and overrule the decision on the resolution of the insolvent CB PrivatBank PJSC with the participation of the state.

5 April 2019

Competitive selection begins for the positions of the independent members of the supervisory boards of the state-owned banks, including PrivatBank.

14 March 2019

Engin Akçakoca has been reappointed as the Chairperson of PrivatBank’s Supervisory Board.

7 March 2019

The Ministry of Finance publishes a report on the status of implementation of the updated Framework of Strategic Reform of the State Banking Sector. The framework provides for PrivatBank to continue implementing its individual development strategy.

4 March 2019

Yurii Heletii is appointed by the bank’s shareholder as a new member of the Supervisory Board of PrivatBank to represent the shareholder.

18 February 2019

The Supervisory Board accepts the resignation of Oleksandr Drelinh, the member of the Board of PrivatBank responsible for IT. Andrii Hrytseniuk becomes the new member of PrivatBank’s Board responsible for IT.

15 February 2019

The Permanent Court of Arbitration delivers a ruling in favor of PrivatBank and against the Russian Federation with respect to expropriation of the bank’s assets in Crimea.

23 January 2019

In 2018, PrivatBank earned UAH 11.67 billion in net profit.


Comments by international institutions

Federica Mogherini, High Representative of the European Union for Foreign Affairs and Security Policy, expressed her support to the Ukrainian government’s decision to let the state take ownership of the bank. “Let me use this occasion to commend the Prime Minister’s, President’s, and government’s efforts to restore confidence in the financial sector... through a bold and courageous decision to nationalize PrivatBank. This step should help ensure that all banks in Ukraine meet the same regulatory standards,” she said in a statement.

Christine Lagarde, Managing Director of the IMF, recognized that the government’s and NBU’s decision “to nationalize PrivatBank is an important step in their efforts to safeguard financial stability.”

The (EBRD)strongly supported “the decision of the government of Ukraine to nationalize PrivatBank and to protect its depositors” and backed “the efforts by the National Bank [of Ukraine] to reform the country’s financial sector and to ensure really good governance across the industry.”

The World Bank welcomed “the bold step taken by the Central Bank and the Government of Ukraine in securing the financial stability of the banking system in the country.” The World Bank said it considered it “critically important to put in place professional management and an independent Supervisory Board to effectively restructure PrivatBank, safeguard depositors, and minimize costs to taxpayers.”

G7 ambassadors approved the nationalization of PrivatBank. “We recognize and applaud the leadership of the governor of the National Bank of Ukraine, the Prime Minister, the Minister of Finance and the President for their continued efforts to clean up the banking sector and stabilize the economy. The government’s decision to nationalize PrivatBank is an important and necessary step in this process, and it will help ensure that all banks in Ukraine are held to the same prudential regulatory standards. This will make the banking sector stronger and more resilient,” the ambassadors said.

Federal Chancellor of Germany Angela Merkel commended the bold and necessary decision of the Ukrainian authorities to privatize PrivatBank.

Anders Åslund, a senior fellow at the Atlantic Council in Washington, said the transfer of PrivatBank to the state marked “the end of the banking crisis in Ukraine.”

Elmar Brok, the Chairperson of the Committee on Foreign Affairs of the European Parliament complemented on the progress of reform efforts in Ukraine, in particular, regarding the strengthening of the banking system and the bold decision to nationalize PrivatBank.

18 April 2019
International partners of Ukraine – the European Union Delegation to Ukraine, the World Bank, the Embassy of the United States of America in Ukraine, the European Bank for Reconstruction and Development – have once again declared their support of the PrivatBank nationalization. The partners also stressed their continued assistance to the NBU on reforming the financial sector. The partners also stand for introduction of principles of reasonable corporate governance, in particular in state-owned bank.
Statement of the European Union Delegation to Ukraine
Statement of the World Bank
Statement of Embassy of the United States of America in Ukraine
Statement of European Bank for Reconstruction and Development

19 April 2019
Statement of the IMF

For Media

NBU Press releases

02.10.2019 - Yet Another Guarantor of PrivatBank Discharges Liabilities to the NBU under the Settlement Agreement by Reimbursing the Refinancing Loan

20.09.2019 - NBU Comment on Employees of Nikopol Ferroalloy Plant JSC Picketing of PrivatBank Head Quarters

19.09.2019 - NBU Approved Members of PrivatBank Supervisory Board

18.09.2019 - Yet Another Guarantor of PrivatBank to Repay the NBU

09.09.2019 - Nikopol Ferroalloy Plant Discharged Early Its Liabilities to the NBU under the Settlement Agreement by Reimbursing PrivatBank Loan

29.08.2019 - Nikopol Ferroalloy Plant to Repay Part of PrivatBank Debt to NBU

18.07.2019 - Supreme Court Forbids the Companies Controlled by Ihor Kolomoiskyi to Avoid Liability to the NBU

11.07.2019 - Dnipropetrovsk Oblast Court Opens Proceedings in Lawsuit Filed by NBU to Collect Funds from Ihor Kolomoiskyi

19.06.2019 - NBU to Contest in the Supreme Court the Ruling on Illegal Inspection of PrivatBank Prior to Nationalization

18.06.2019 - Financial Stability Report: PrivatBank Litigation and a Possible Pause in Cooperation with the IMF Constitute Key Risks to the Financial Sector

18.06.2019 - NBU Provides the Court of Switzerland with Arguments on Kolomoiskyi's Attempt to Block the Proceedings and Avoid Liability for Refinancing Loans

13.06.2019 - NBU Files Two Claims on Judicial Misconduct in Proceedings on the PrivatBank Nationalization

31.05.2019 - Using Ukrainian Courts, Former Shareholder of PrivatBank Ihor Kolomoiskyi Attempts again to Block Lawsuit NBU filed at Swiss Court

29.05.2019 - NBU to Appeal the Kyiv District Administrative Court Ruling on the Unlawfulness of Removing PricewaterhouseCoopers from the Register of Bank Auditors

24.05.2019 - NBU Appeals Both Rulings by Kyiv District Administrative Court that Overturned the PrivatBank Nationalization

13.05.2019 - NBU Comment on Appeal of Decision to Inspect PrivatBank before Nationalization

22.04.2019 - NBU to Contest the Court Ruling on Terminating the Personal Surety of Kolomoiskyi

19.04.2019 - Financial Stability Council Says PrivatBank and Financial Sector Are Operating Uninterrupted, Parties to Continue to Defend State Interests in Courts

19.04.2019 - District Court Again Rules against the Government on the PrivatBank Nationalization

18.04.2019 - NBU Comment on Appeal against Decision to Nationalize PrivatBank

18.04.2019 - Joint Statement of the Ministry of Finance of Ukraine, the National Bank of Ukraine, and PrivatBank


19.12.2018 - National Bank of Ukraine Files a Claim in Switzerland against the Former Shareholder of PrivatBank Ihor Kolomoiskyi

23.10.2018 - Court Prevents Former Shareholder of PrivatBank from Blocking Operation of International Advisors

13.09.2018 - Court Sustains NBU Decision to Declare CB PrivatBank Insolvent

04.07.2018 - Supreme Court Sustains NBU Legal Position on Enforcing PrivatBank Performance of Refinancing Loans

11.06.2018 - NBU Files a Claim in Switzerland and Ukraine against the Former Shareholder of PrivatBank, Ihor Kolomoiskyi

08.02.2018 - NBU Comment on Requests for Customer Accounts with CB PrivatBank PJSC

16.01.2018 - Kroll Confirmed: PrivatBank was Subjected to a Large-Scale and Coordinated Fraud, which Resulted in Losses of at least USD 5.5 billion

21.12.2017 - NBU Comment on PrivatBank Claim in the High Court of Justice in London

20.12.2017 - NBU Statement on Attempts of PrivatBank Former Shareholders to Block Kroll Actions

20.07.2017 - PricewaterhouseCoopers (Audit) Expunged from the Register of Bank Auditors

20.07.2017 - NBU Grants PrivatBank the Status of an Authorized Bank Eligible to Provide Custodial Services Pertaining to the NBU Cash Reserves

12.07.2017 - Kateryna Rozhkova: Government Decisions on PrivatBank are Reasoned, Transparent, and Open to the Public

03.07.2017 - NBU Comment on the Status of the Restructured Loan Portfolio of PrivatBank PJSC by Former Owners

26.06.2017 - Yakiv Smolii Comments on Oleksandr Shpak Resignation

26.06.2017 - NBU Comment on the Independent Audit Report of PrivatBank PJSC: Low Quality of the Loan Portfolio

23.06.2017 - NBU Suggest to Increase PrivatBank PJSC Capital by UAH 38.5 Billion

24.02.2017 - NBU Approves Amendments to PrivatBank Ownership Structure

01.02.2017 - NBU Comment on Information Spread by the Media on Refinancing Loan issued to PrivatBank PJSC on 19 December 2016

16.01.2017 - NBU Additional Monetization of Domestic Government Bonds for PrivatBank PJSC of UAH 1.4 billion

29.12.2016 - NBU Monetizes Domestic Government Bonds for PrivatBank PJSC

27.12.2016 - NBU Issues PrivatBank a Refinancing Loan for UAH 10 Billion

26.12.2016 - Notice to PrivatBank Eurobond Holders

22.12.2016 - Government Capitalization of PrivatBank PJSC to Leave Macrofinancial Stability Unaffected

20.12.2016 - NBU Issues PrivatBank PJSC a Refinancing Loan for UAH 15 Billion

19.12.2016 - Government Approves the Decision on State Participation in PrivatBank PJSC

Press releases of other public sector authorities

28.09.2019 - PrivatBank Appeals Rulings of Kyiv District Administrative Court Declaring Nationalization Illegal

23.09.2019 - CB PrivatBank PJSC Launches Legal Proceedings against its Former Owners and Their Close Associates in the US

18.04.2019 - Ministry of Finance Comment on Appeal of Decision to Nationalize PrivatBank

18.04.2019 - “Regardless of the Winner of the Presidential Elections, the Bank will not Stop Seeking Justice,” declares Engin Akçakoca, the Chairman of the Supervisory Board

07.03.2019 - Ministry of Finance Announces a Competition for an HR Company to Find Prospective Independent Members of the Supervisory Board of Oschadbank JSC, Ukreximbank PJSC and CB PrivatBank JSC

05.03.2019 - Ministry of Finance Announces Change of Members of CB PrivatBank PJSC Supervisory Board

15.02.2019 - Permanent Court of Arbitration Rules in Favor of PrivatBank and against the Russian Federation on Expropriation of the Bank’s Assets in Crimea


04.12.2018 - Court of Appeal of England and Wales to Decide the Jurisdiction of PrivatBank Claim

23.11.2018 - PrivatBank to Contest the Ruling of the Court of Appeal of England and Wales

09.10.2018 - PrivatBank Generated 100% Loss Allowances for the USD 272.3 million Debt of Ten Foreign Borrowers Incurred Prior to the Nationalization

08.10.2018 - PrivatBank to Engage Leading Consultants to Sell Bukovel Resort, Dnipro Stadium, and other Major Facilities

29.08.2018 - Supervisory Board of PrivatBank Approves the New Structure and Members of the Board

01.08.2018 - PrivatBank Statement on the Hearing in High Court of Justice in London

27.06.2018 - Ministry of Finance Approves PrivatBank Development Strategy Until 2022

27.04.2018 - Supervisory Board of PrivatBank Approves PrivatBank Annual Report and Development Strategy Until 2022

02.04.2018 - PrivatBank Files a Lawsuits against PricewaterhouseCoopers (Cyprus) and PricewaterhouseCoopers (Ukraine)

10.01.2018 - PrivatBank Supervisory Board Appoints Petr Krumphanzl as Chairman of the Board

26.12.2017 - Fourth Stage of CB PrivatBank PJSC Additional Capitalization Completed

20.12.2017 - High Court of Justice in England Issues an Order on the Global Seizure of over USD 2.5 Billion

18.12.2017 - PrivatBank Continues to Pursue Initiators of Fabricated Lawsuits

28.11.2017 - PrivatBank Recognized Leader of Lending Growth in Ukraine

16.08.2017 - Acquisition of Qualified Holding in PrivatBank JSC (Latvia)

12.07.2017 - Third Stage of CB PrivatBank PJSC Additional Capitalization Completed

02.07.2017 - Statement of the Ministry of Finance on the Status of the Restructured Loan Portfolio of PrivatBank by Former Owners

23.06.2017 - Statement of the Ministry of Finance on CB PrivatBank PJSC Additional Capitalization

24.04.2017 - Statement on PrivatBank Additional Capitalization

14.03.2017 - Rebuttal of the Media Reports on Ukraine’s Participation in International Trials Filed by CB PrivatBank PJSC

27.02.2017 - Danyliuk: Former PrivatBank Shareholders are in no Rush to Provide Collateral

22.02.2017 - Government Completes PrivatBank Capitalization for UAH 116.8 Billion

23.12.2016 - Minister of Finance Oleksandr Danyliuk Presents the Supervisory Board of PrivatBank

21.12.2016 - Agreement on the Sale of 100 Percent of PrivatBank PJSC Shares to the Government Signed

21.12.2016 - PrivatBank Sold to the State

20.12.2016 - State Fiscal Service Not to Fine Taxpayers due to Possible Disruptions in PrivatBank Operation

20.12.2016 - PrivatBank Resumes Payments to Sole Proprietors and Legal Entities

20.12.2016 - Announcement on State-Assisted PrivatBank Resolution

NBU Comments and Statements to the Media

Kateryna Rozhkova, First Deputy Governor of the NBU, in her interview to on PrivatBank negotiations, 9 October 2019:

“We’ve raised the issue of trials involving PrivatBank at our meeting with the President and the Prime Minister in light of consequences for the financial stability. We discussed that such decisions (in April the District Administrative Court in Kyiv ruled PrivatBank nationalization to be illegal, at present the Commercial Court in Kyiv is hearing cases on returning shares to previous owners) cause negative publicity for the bank. After the first ruling on the nationalization we clearly observed outflows of customer deposits that were not critical for the bank in general, yet very unpleasant.”

Kateryna Rozhkova, First Deputy Governor of the NBU, in her interview to The Page on the PrivatBank nationalization, 25 July 2019:

“We don’t live in a fairy-tale or a virtual world. The nationalization decision was made jointly by the National Bank of Ukraine, the Cabinet of Ministers, and the National Security and Defense Council. Furthermore, we have the Financial Stability Council consisting of representatives of other regulators, like the Ministry of Finance, the Deposit Guarantee Fund, the National Securities and Stock Market Commission, and the National Commission for the State Regulation of the Financial Services Markets. Together we discussed, why should we do this, what will happen if we don’t, what negative consequences await the whole the country. That’s why, first, these decisions are reasoned. And I believe that justice will triumph.
Second, we continue to defend and affirm our position in courts. Third, the support of our external partners and creditors is crucial in this process, The IMF, for example. When the IMF enters into a relationship with a country and provides it with financial aid, a memorandum is signed prescribing liabilities, like in a loan agreement. In order to repay money over a period of time, we need to make some improvements. As a rule, such organizations do not engage with individual financial institutions. These organizations interact with the financial system as a whole: the sustainability of the system needs to be ensured. For that purpose, annual inspections are to be conducted and in special cases, additional capitalization is to be provided.
Those are the global standards. At the same time, individual systemically important institutions exist and the IMF interacts with such on first-hand basis. In our case, PrivatBank was regarded as such since it accounted for 35% of deposits and over 50% of financial transactions. Such a monopoly should not have been allowed in the first place. For that purpose, the regulator always has measures on-hand. However, such measures were not implemented in a timely manner. As a result, we are, where we are: the bank is too big to fail.”

Kateryna Rozhkova, First Deputy Governor of the NBU, in her interview to Ukrainian Radio on the PrivatBank nationalization, 5 July 2019:

“We have a submission from Kolomoiskyi requesting the nationalization of PrivatBank. If I’m not mistaken, it dates back to early October 2016. If the program was complied with during three years, we would not have had to declare the bank insolvent. The NBU follows the law, and if the decision on PrivatBank had been put off, this would have resulted in a violation. However, the NBU urged to resolve the matter amicable, since the entire financial sector could have suffered from PrivatBank business disruptions. Nationalization was a forced measure.

Kateryna Rozhkova, First Deputy Governor of the NBU, in her interview to Ekonomichna Pravda on PrivatBank, 19 June 2019:

“PrivatBank cannot be liquidated or go bankrupt. There has to be another way. Nationalization was a forced decision caused only by the fact that the bank had a huge capital shortage. Reversing the situation clearly goes against liabilities our country assumed to the IMF to recover our system.

Kateryna Rozhkova, First Deputy Governor of the NBU, in her interview to Voice of America regarding the IMF stance on PrivatBank proceedings, 10 June 2019:

“It’s hard for me to tell, what the decision will be. But there is a risk that the decision to continue cooperation can be postponed again and again. And this leads to other risk to the financial stability. Thus, there are no alternatives to continued cooperation with the IMF for us... The outcomes of legal proceedings will be the red line for the IMF.”

Kateryna Rozhkova, First Deputy Governor of the NBU, in her interview to Reuters on a possible repeated nationalization of PrivatBank, 16 May 2019:

“The National Bank of Ukraine will continue to insist on a repeated nationalization of PrivatBank, if the court decides to cancel the nationalization decision of 2016. Rozhkova said that cancellation of nationalization would suspend the cooperation program with the IMF of USD 3.9 billion and betray the trust of investors.
According to the Fist Deputy Governor, cancellation of nationalization will also reverse the Government bail-out of UAH 155 billion (USD 5.88 billion) to save the bank from insolvency.“In that case the bank will be left with no capital. The NBU being the regulator will approve a respective decision in line with Article 56 of the law stating that the NBU is compelled to declare the bank insolvent,” said Rozhkova. “This means either liquidation of the bank or its transfer to state ownership,” noted the NBU Deputy Governor.
Also, Rozhkova added that the best option would be the return of the bank to the state considering its role in the economy.

Kateryna Rozhkova, NBU First Deputy Governor of the NBU, in her interview to Livyi Bereh Publication on the options for returning PrivatBank, 26 April 2019:

“Since, according to the governing law, the nationalization process does not cover the return of the bank to the owner, the former owner cannot have any claims or demands to the new owner, the former owner can claim damages, if he proves this fact.”

Kateryna Rozhkova, First Deputy Governor of the NBU, in her interview to Novoe Vremya Publication on the PrivatBank nationalization, 21 February 2019:

“The decision to nationalize PrivatBank should have been made much sooner. At that time, the bank had negative capital and no liquidity. That is, the bank was insolvent. You cannot turn back time. The bank could be either liquidated – but that would have collapsed the entire financial system of the country – or nationalized. The decision on the state participation in the capital was the best possible and fair.”


Kateryna Rozhkova, First Deputy Governor of the NBU, on the lack of denationalization mechanisms for PrivatBank, 17 December 2018:

“Today there is neither a clear vision nor a legal procedure for that. But, if we presume a 100% restitution, the state funding will be retrieved from the bank and PrivatBank will have no capital and a decision will need to be made yet again...”

Yakiv Smolii, Governor of the National Bank of Ukraine spoke to VoxUkraine on the progress of the PrivatBank nationalization, 8 December 2018:

“I will only note, that just over two years since the state acquired the title to the bank’s shares, PrivatBank has managed to rectify major business deficiencies. Furthermore, it now has the best performance indicators among all state-owned banks, and higher than the average market ones. The bank’s loan portfolio of small and medium businesses has tripled, while the retail loan portfolio has doubled. The positive changes resulted in recovery of operating profitability and major growth of net profit of PrivatBank reaching UAH 7.1 billion in 10 months of 2018.”

Viktor Hryhorchuk, Head of the Litigation Office of the Legal Department of the National Bank of Ukraine on legal claims of the NBU to former PrivatBank shareholders, 29 October 2018:

“One of the NBU’s major litigation efforts was on enforcement of the refinancing debt, specifically from the former shareholder of PrivatBank, Ihor Kolomoiskyi. Almost four months ago, the NBU filed 148 claims for about UAH 10 billion against the businessman and his 32 associated companies. The objective of those claims is to make the defendants discharge their liabilities.”

Kateryna Rozhkova, First Deputy Governor of the National Bank of Ukraine on new claims filed in Switzerland and Ukraine against the former shareholder of PrivatBank, Ihor Kolomoiskyi, 11 June 2018:

“These claims are yet another important step towards protection of interests of Ukrainians and ensuring discharge of liabilities assumed by the former shareholders of PrivatBank.
PrivatBank received refinancing loans from the NBU secured by sureties provided by Ihor Kolomoiskyi personally. However, today it is clear that back then PrivatBank had no means to repay these loans. Finally, the state was compelled to nationalize the bank for the price of 5% GDP in order to protect interests of millions account holders and preserve the financial stability as a whole. At present, the NBU proceeds with legal actions to enforce repayment of the mentioned funds by Mr Kolomoiskyi.”

Yakiv Smolii, Governor of the National Bank of Ukraine told Dzerkalo Tyzhnia about performance of loans of the former owners of PrivatBank, 10 June 2018:

“Regarding the bank’s former shareholders, debts of related parties are not being repaid forcing to raise loss allowance of 99%. At present, these matters are mostly handled in court.”

Kateryna Rozhkova, Deputy Governor of the National Bank of Ukraine, and Alfredo Bello, representative of Kroll Inc. spoke at the press conference on 16 January 2018 on the investigation of fraudulent schemes in PrivatBank:

“First, it has been proven that depositors’ funds were siphoned off. There are clear evidence that loans issued to companies associated with the former shareholders were used to acquire assets and fund business in Ukraine and abroad for the advantage of the former beneficiaries and groups of affiliates. Second, the bank concealed the sources of funds. Mechanisms used to cover up the sources and the real purpose of loans are indicative of coordinated money laundering schemes. Third, PrivatBank created a bank inside a bank. Kateryna Rozhkova noted that the audit findings were reported to the Prosecutor General's Office of Ukraine, international partners, ambassadors, counterparties from state agencies, and experts.”

Kateryna Rozhkova, Deputy Governor of the National Bank of Ukraine, spoke at the round table at the NABU: Nationalization of Banks: Global Practices and Ukrainian Realia dedicated to the anniversary of the state participation in PrivatBank capital, 18.12.2017:

At present, the NBU acts as a PrivatBank regulator, similar as for other banks, and conducts supervision requiring the bank to abide by ratios, plans, and business strategy. And everything related to legal cases, negotiations with the former owners on loan repayment, and sale of assets is at the discretion of PrivatBank acting as any other bank with nonperforming loans.”

NBU Deputy Governor Kateryna Rozhkova for, 19.10.2017:

“The PrivatBank case is of great importance for the whole state. Back then, we saved millions of Ukrainians and ensured financial stability, but also spent billions of hryvnias of taxpayer funds on the bank. The state’s ability to resolve problems of such a scale to protect the interests of its citizens proves its maturity, and I hope that Ukraine will pass this ‘test’ with dignity.”

NBU Deputy Governor Kateryna Rozhkova speaks on Radio Vesti on noncore assets on PrivatBank’s balance sheet, 7 October 2017:

“Bukovel is a highly complicated asset that, de facto, is not administered by the bank’s top managers. That is why it must be sold. The bank lacks both the personnel and competence to manage it.”

NBU Deputy Governor Kateryna Rozhkova speaks on PrivatBank’s assets during the Ukrainian Financial Forum 2017 in Odesa, 22 September 2017:

“There is nothing sellable in PrivatBank. Let’s leave it out of this discussion. You may only pay someone extra to accept it as a gift.”

NBU Deputy Governor Kateryna Rozhkova for on the reasons for the nationalization of PrivatBank, 17.07.2017:

“The bank was declared insolvent because it lacked capital and liquidity. I want to emphasize that related parties were not the reason why we had to nationalize the bank. In December 2016, E&Y executed due diligence for the bank and uncovered a capital shortage in the amount of UAH 198 billion at the time of the nationalization. The capital loss was due to a large volume of loans issued to related companies.”

NBU Deputy Governor Kateryna Rozhkova speaks on 112 Ukraine on PrivatBank’s assets , 04.07.2017:

“The primary task that the bank faces now is to conduct an inventory of these assets, review the available documents (their compliance with the law), and perform a new valuation. Only after that may we proceed with further steps, including a tender.”

NBU Deputy Governor Kateryna Rozhkova explains on UATV that PrivatBank’s former owners have no right to get the bank back , 03.07.2017:

“The former owners have no legal right to reclaim PrivatBank. Even if the bank gets sold to a new investor, the previous owner cannot demand from the new one any compensation for losses. Still, since some of our courts are trying to interpret laws in their own way, anything is possible. But I am sure that our state can protect its own interests and will do so.”

NBU Deputy Governor Kateryna Rozhkova speaks on the Finansoviy Tyzhden show on Channel 5 on the challenges that PrivatBank’s team faced right after the nationalization and the challenges of mid-2017, 1 July 2017:

“The team taking over the administration of PrivatBank was tasked with keeping the situation within the bank. Stabilizing it. This pertained to both its personnel and its customer base. The team accomplished the task.”
“Choosing the business model, determining the strategy, and building the business. Another big task is also asset recovery. That task may require replacing management in full or partially.”

Acting NBU Governor Yakiv Smolii speaks to on PrivatBank’s nationalization and the primary task of the regulator , 30.06.2017:

“Nationalizing PrivatBank was the only right decision at the end of 2016 since the NBU had to preserve macrofinancial stability. PrivatBank’s liquidation could have caused social tensions, as more than a half of Ukraine’s population was at the time, and still is, the customers of PrivatBank. More than 20 million people own PrivatBank accounts or payment instruments. Preserving the bank’s full functional capacities was the primary task for us as the regulator.”

NBU Financial Stability Department Director Vitalii Vavryshchuk comments to Economichna Pravda on the importance of restructuring PrivatBank’s portfolio , 30.06.2017:

“PrivatBank was saved using taxpayer funds: the average cost per Ukrainian taking into account the planned additional capital injections amounts to over UAH 3,500.”

NBU Deputy Governor Kateryna Rozhkova comments in her interview for Finbalance on insider loans issued by PrivatBank PJSC, 22 June 2017:

“Confirmation or nonconfirmation of the insider nature of the loans issued by PrivatBank to its former related parties is a matter of forensic audit, which is now ongoing. [Kroll and AlixPartners are working on it – Finbalance] We will publicize such information at certain intervals with the permission of our lawyers and in acceptable volumes.”

NBU Deputy Governor Kateryna Rozhkova speaks in her interview for FinClub on increasing PrivatBank’s capital and performing a forensic audit of PrivatBank, 15 June 2017:

“Before 1 July, there should be a published report with the figures. It is clear that a state-owned bank has to comply with the current regulatory requirements, which means that adequacy should be at 5% at present, reaching 7% by the year’s end. That is our target in our future cooperation with the Ministry of Finance, and we will be the ones to initiate the process. Hence, it is obvious that a state-owned bank needs a capital increase where there is a capital shortage.”

NBU Deputy Governor Kateryna Rozhkova comments to on the tender for a consulting firm for PrivatBank won by AlixPartners , 16 May 2017:

“Given the complexity of the procedure and its state secrecy, we tried to control information leaks. We worked on this issue with the CMU, the MoF, the DGF, and other state authorities. The decisions were made collectively.”

NBU Deputy Governor Kateryna Rozhkova explains in her comment to Radio Svoboda that PrivatBank’s former owners still have the time to return the funds until 1 July , 12 May 2017:

“If they fail, PrivatBank’s current owner (the Ministry of Finance), top management, and its independent supervisory board must act as all banks do when their borrowers fail to repay loans. This implies litigation: court proceedings to return the assets that have been removed from the bank.”

NBU Governor Valeria Gontareva reminds in her interview to The Wall Street Journal why the state became the shareholder of PrivatBank, 4 April 2017:

“An astonishing 97% of the bank’s corporate loans had gone to companies linked to the two main shareholders through sophisticated schemes. Now that PrivatBank is in the government’s hands, the deposits of 20 million Ukrainians, including pensioners, students and vulnerable households, are protected.”

NBU Governor Valeria Gontareva speaks in her interview to Financial Times on the harassment and threats against the NBU’s team by the former owners of PrivatBank, 26 March 2017:

“One big oligarch personally threatened me – physically threatened me – even in this office.” “There was absolutely tons of fake information, manipulation, real absolutely evil slander about me personally, about the National Bank team.”

NBU Deputy Governor Kateryna Rozhkova speaks in her interview to про відповідальність колишніх власників ПАТ «ПриватБанк» у інтерв’ю порталу, 06.02.2017:

“If there are no payments on the loans, we will have to address the issue of the liability for causing the bank’s bankruptcy. That is why I believe that restructuring the portfolio and ensuring its gradual redemption is in the interests of the shareholders themselves.”

NBU Governor Valeria Gontareva explains in her interview to who made the decision on transferring PrivatBank’s shares to the state , 2 February 2017:

“It was the NBU that decided to declare the insolvency. Yet, this matter was discussed at the NSDC’s meeting, followed with a meeting of the Cabinet of Ministers on the same Sunday. The bank’s shareholders were not present at those meetings. But we had a meeting with them before that, where they gave us a letter of guarantee stating that they would restructure their loans.”

NBU Risk Management Department Director Ihor Budnyk speaks in his interview to on the evaluation of collateral at PrivatBank by PricewaterhouseCoopers (PwC), 18 January 2017:

“We submitted PwC reports for review to the expert boards of Ukrainian self-regulatory organizations and received numerous negative opinions from them. After that, we filed two appeals to the State Property Fund asking to revoke the certificates of the appraisers who performed those appraisals, as well as the company’s appraisal license.”

NBU Legal Department Director Oleh Zamorskyi on the information spread by certain media regarding the refinancing loan issued on 19 December 2016 by the NBU to PrivatBank PJSC, 1 February 2017:

“The decision to nationalize PrivatBank and other decisions in this regard were prepared, coordinated, and approved by the relevant state authorities in strict accordance with Article 41.1 indent 4 of the Law of Ukraine On the Household Deposit Guarantee System. Prior to the nationalization, due diligence was carried out and the necessary legislative and regulatory framework required to make and justify this decision was prepared taking into account the risks to financial stability and national security.”

NBU Deputy Governor Kateryna Rozhkova in her comment to VoxCheck, 20.01.2017:

“We performed an analysis of all corporate borrowers of PrivatBank and learned that many of them received services and loans solely from PrivatBank and were related by funds or commodities only to other companies of the Privat Group or the companies owned by Kolomoiskyi or Boholiubov. Such enterprises and their owners are classified as related parties by default.”

NBU Risk Management Department Director Ihor Budnyk in his interview to, 18.01.2017:

“We have some questions as to PwC’s appraisals of collateral for PrivatBank and one more operating bank, which we cannot name. Almost all of their reports that we saw had serious flaws, which made them low-quality and unprofessional in most cases.”

NBU First Deputy Governor Yakiv Smolii during the briefing in Dnipro, 22.12.2016:

“We became witnesses to an unprecedented project in the history of Ukraine, as the transfer of ownership from private shareholders to the state at such a scale had never happened in Ukraine before. However, the NBU, the DGF, and the bank’s employees made every effort to protect the bank’s customers.”

NBU Deputy Governor Oleg Churiy on the situation in the FX market, 21.12.2016:

“The situation in the FX market remains stable after the NBU’s FX intervention of 20 December. At the start of the week, hryvnia exchange rates experienced pressure from psychological factors, such as the news on PrivatBank. However, the situation returned to normal.”

NBU First Deputy Governor Yakiv Smolii for 112 Ukraine, 21.12.2016:

“Yesterday, PrivatBank executed all payment instructions of all its customers – both legal entities and individuals. Moreover, all payments to the state budget were completed. As previously reported, PrivatBank executed over 750,000 payment instructions of its corporate customers.”

NBU Governor Valeria Gontareva for TV Channel Ukraine, 20.12.2016:

“I think we will be able to sell PrivatBank.”

NBU First Deputy Governor Yakiv Smolii for 112 Ukraine, 20.12.2016:

“The accounts of individuals and legal entities for conducting payments were unblocked.”

NBU Deputy Governor Oleg Churiy on the situation in the FX market, 20.12.2016:

“The NBU is closely watching the situation in the FX market and will not allow for any crises to unfold there. We have enough instruments to smoothen out the excessive fluctuations of hryvnia exchange rates caused by temporary factors.”

NBU Deputy Governor Dmytro Sologub for Hromadske.TV, 19.12.2016:

“We have completed the main stage of cleaning up the banking system.”

NBU Governor Valeria Gontareva for the Svoboda Slova TV show on ICTV, 19 December 2016:

“The nationalization of PrivatBank was the result of its unsound lending policy.”

NBU Deputy Governor Kateryna Rozhkova for Radio Vesti, 19.12.2016:

“The state does not have to issue securities to acquire the bank’s shares, since the shares will be transferred before the next mission. The further increasing of capital will be done by the Ministry of Finance.”

NBU Financial Stability Department Director Vitalii Vavryshchuk for Radio Svoboda, 19.12.2016:

“There will be no trouble, since the NBU is ready to provide support to PrivatBank, or any other Ukrainian bank, at any moment to prevent any inconvenience to depositors, or any customers, in regard to the events unfolding at present. The NBU is ready to provide both cash and noncash liquidity to any bank.”