Financial Stability Council Holds Meeting
A court in Kyiv ruled the nationalization of PrivatBank to have been illegal
Photo from National Bank of Ukraine
On April 19, 2019, the Financial Stability Council held a meeting in connection with the decision of the Kyiv District Administrative Court that ruled the nationalization of PrivatBank unlawful, the press center of the National Bank of Ukraine reported.
“The correspondent court ruling creates legislative uncertainty, and therefore potential risks for future financial stability in Ukraine. The ruling also complicates Ukraine’s cooperation with international financial institutions (IMF, WB, EBRD), as well as the defense process in other proceedings, regarding the compensation of damages, made by former shareholders of PrivatBank to National Bank and country,” the statement reads.
Along with that, the council noted that the situation has remained calm and quiet since the ruling was issued.
On April 18, 2019, the Kyiv District Administrative Court, considering the claims of Ihor Kolomoyskiy against the NBU, the Cabinet of Ministers, the Fund for the Guaranteeing of Individuals’ Deposits, and the National Commission on Securities and Stock Market, recognized as illegal the nationalization of PrivatBank.
The Court explained the decision by saying that the defendant had not properly proven the insolvency of PrivatBank.
The National Bank insists that the decision on PrivatBank insolvency was made on the basis of the analysis of the quality of its assets, which resulted in the recording of negative equity.
The Ministry of Finance and National Bank of Ukraine are preparing an appeal against the court decision.