Yesterday there took place an important meeting of the Cabinet of Ministers of Ukraine. The meeting was convened at the request of the National Bank of Ukraine about the future of PrivatBank. The Ministry of Finance, having considered the proposal put forth by the National Bank of Ukraine about possible participation of the state in the statutory capital of PrivatBank, suggested a possibility of transferring PrivatBank into an absolute ownership of the state. Taking into account a letter by the shareholders of the Bank requesting state equity participation in the Bank, including the NSDC decision, the Cabinet took a relevant decision yesterday. Thus, the state becomes an absolute owner of PrivatBank.
We made this decision, being guided first of all by the need to ensure the stability of the banking system of Ukraine and the security of savings deposits and funds of Ukraine’s citizens. According to the estimates of the National Bank of Ukraine, the difference between the accumulated reserves and the default risk as of December reached nearly UAH 150 billion, thereby jeopardizing further provision of services by the Bank. First and foremost, we refer here to 3.2 million pensioners, over 500,000 students and 1.6 million socially vulnerable households. It also concerns over 3.5 million payroll accounts, funds belonging to 500 thousand sole proprietors. It is clear that the situation with PrivatBank could have had extremely negative consequences for the entire financial system of Ukraine. Thus, by yesterday's decision we have made it possible to protect nearly 20 million clients of the Bank, 20 million citizens of Ukraine and the financial stability of our state as well. It was our primary task - to act to protect interests of the Ukrainian people.
Now, a joint team comprising representatives of the National Bank of Ukraine, those of the Deposit Guarantee Fund and members of the Ministry of Finance is working at PrivatBank. This team ensures technical support in the process of transfer of the Bank to the ownership of the state. The owners and management of PrivatBank promised to promote this process. Our shared objective is to ensure smooth operation of the Bank during this transition stage, and in the future – to provide the Bank’s successful development. Funds held by clients in the Bank from now on are passed under 100% guarantee of the state. The National Bank during this period will maintain the stability of the national currency and has enough tools for this purpose.
In conclusion, I want to emphasize once again that we have made an important decision enabling us to protect the interests of the Ukrainian citizens, and we will further focus on the needs of Ukrainian citizens and ensure they feel that the state is capable of defending their interests.
The Government concentrates on how to ensure stability in the country and to create prerequisites for economic development. This week we expect adoption of the country's budget for 2017, and it contains clear priorities for the development of our state. We hope for a successful vote in Parliament.
I believe that we will begin next year smoothly and prolong maintaining a normal life in our beautiful country.