Incidents, Economics

 NBU deputy chief: Lawsuits regarding Kroll detective agency investigations in Privatbank motivated by desire to render their findings unlawful

National Bank of Ukraine (NBU) Deputy Head Yekateryna Rozhkova says over 400 lawsuits have been filed against the NBU, Privatbank, and Finance Ministry, which are somehow connected with Privatbank's nationalization.

"Such a large number of claims testify, first of all, to the open reluctance of PrivatBank former owners to restructure and repay debts despite promises and letters that were sent to the National Bank, the prime minister and the Minister of Finance," she told a press conference, Censor.NET reports citing Interfax-Ukraine.

Rozhkova noted these lawsuits are also filed to destabilize the work of the National Bank, Privatbank and the Ministry of Finance making efforts to return these debts.

Asked about lawsuits regarding the work of Kroll detective agency and AlixPartners consulting company hired by the National Bank, the banker expressed her personal opinion that "this is just a manifestation of weakness and fear that the results of cooperation with Kroll, AlixPartners will be very unpleasant for former shareholders."

Commenting on filing such claims by the opponents to the London court, Rozhkova stated she counts on objective consideration of this dispute there.

Earlier, Ukraine’s Prosecutor General's Office launched a probe into possible collusion of employees of Privatbank, Ukraine’s National Bank, and Kroll Associates U.K. Limited, a U.K.-based investigative firm involved in anti-corruption campaign in Privatbank before its nationalization. The PGO initiated a case into bringing Privatbank to insolvency on July 4, 2017.

Bank's Board Chairman Oleksandr Shlapak said 36 loans were signed by the former chairman of the board, Oleksandr Dubilet, with him exceeding the powers. The National Bank was provided unreliable data on uncovered credit risk and undeveloped reserves, and borrowers were not checked for relatedness, their financial position was artificially overstated.

Read more: NABU raids head office of Privatbank

On Dec. 18, the Cabinet of Ministers announced its decision to nationalize Privatbank, the largest privately-held bank of Ukraine. The government intends to issue 30-year domestic government loan notes worth 150 billion hryvnia ($5.54 billion) and become a 100-percent owner of the bank. The bank's first deputy CEO announced the decision was made after an unprecedented information attack on the bank and a threat it posed to its clients. The bank's leadership assured the clients their savings will be safe, naming it the key condition in the talks. In his turn, Minister of Finance Oleksandr Danyliuk confirmed the clients' money will be safe and protected by the state. Due to the nationalization procedure, Privatbank halted corporate transactions for one day, till 9 a.m. Dec. 20.

According to the National Bank of Ukraine, Privatbank needs 148 billion hryvnia in additional capitalization. The finance minister said that after Privatbank is stabilized, the state plans to sell it. In turn, President Poroshenko said the state guarantees safety and integrity of the client's funds.

The decision on the Privatbank nationalization has been supported by IMF, EBRD, the G7 countriesthe EU and the U.S.

Источник: https://censor.net.ua/en/n3040228