Cabinet meets on Sunday: Ukraine's No. 1 bank will be nationalized

"At a meeting on Sunday, the Cabinet of Ministers considered issues to ensure stability in the country's financial system. Taking into account the results of a meeting of the National Security and Defense Council of Ukraine, the government has supported the proposal put forth by the National Bank and the Council for Financial Stability on the transfer of PJSC PrivatBank to 100% state ownership," the Cabinet said in a posting on its official website on Sunday evening.

The government represented by the Finance Ministry will become the owner of 100% of shares of PJSC PrivatBank and will guarantee the smooth functioning of the bank and security of its clients' assets.

"These efforts are being taken in close coordination with international financial institutions and with their support," the Cabinet said.

Read alsoFitch affirms Ukraine's PrivatBank and Pivdennyi at 'CCC'"NBU Governor Valeriya Gontareva, who attended the Cabinet meeting, and Finance Minister Oleksandr Danyliuk informed Cabinet members that PrivatBank's private shareholders had turned to the government with the proposal that the government, acting in the interests of the bank's clients, become its absolute owner," the Cabinet said.

Read alsoPrivatBank – Ukraine's only bank in Top 1000 World Banks The transition will start on December 19. The government undertook to conduct "a smooth transition, stable operation of this institution in the usual mode its clients became accustomed to."

The government says it proceeds from the fact that the responsible decision it has taken has saved both PrivatBank and the entire Ukrainian banking system.