Ukraine's central bank comments on court ruling to roll back PrivatBank nationalization

REUTERS The National Bank of Ukraine (NBU) disagrees with the Kyiv&#39;s District Administrative Court ruling recognizing the nationalization of PJSC CB PrivatBank unlawful. The NBU will challenge the ruling in the court of appeals, according to the bank&#39;s press service. As reported, today Kyiv&#39;s District Administrative Court satisfied the claim of Ukrainian businessman Ihor Kolomoisky vs the National Bank of Ukraine and the Cabinet of Ministers regarding the nationalization of the financial institution, ruling that the procedure for withdrawing an &#39;insolvent&#39; bank from the market had violated the legislation. "The court decision has not entered into force and will be appealed by the National Bank. We will continue to prove in the court of appeals the legality of actions and decisions of the regulator. Once again, we&#39;re drawing attention to the fact that the legal uncertainty generated by court rulings undermines financial stability," the press service quoted head of the NBU&#39;s Claims Office at the Legal Department, Viktor Hryhorchuk. Read alsoKyiv court rules PrivatBank&#39;s nationalization illegal The National Bank will also propose that the Financial Stability Board contact the National Security and Defense Council of Ukraine and the Cabinet of Ministers of Ukraine regarding such judicial practices harming Ukraine&#39;s international image. "The legality of decisions made is obvious, while the reverse procedure in this case is impossible because there are no legal or economic grounds for this. After the insolvent bank was withdrawn from the market with the participation of the state, PrivatBank completely switched to the market business model, and today, it is the most profitable Ukrainian bank and part of a stable and transparent banking system," First Deputy Governor of the National Bank of Ukraine Kateryna Rozhkova said. The NBU says the deficit in PrivatBank&#39;s capital was revealed as a result of stress testing, later confirmed by an inspection carried out by an independent international auditor. "Since former shareholders of the bank failed to fulfill their obligations to financially improve the bank, of which they personally assured in their written request, the National Bank declared PrivatBank insolvent and appealed to the government to acquire ownership of the bank&#39;s shares," the press service added.

Ukraine's central bank comments on court ruling to roll back PrivatBank nationalization

UNIAN Web subscription