The fourth stage of the additional recapitalization of the Privatbank has been completed

The fourth stage of the additional recapitalization of the Privatbank has been completed. During this stage, domestic bonds amounting 16 billion hryvnas were changed for the bank’s shares.

The additional recapitalization totaling 38.5 billion hryvnas was decided by the Government on June 23, 2017, based on the proposals of the National Bank and taking into account the recommendations of the Expert and Analytical Council for the state participation in the banks’ capital as well as the conclusion of the external auditor (audit company EY).

In line with that decision, the additionally issued shares of the Privatbank were changed for domestic state bonds amounting 22.5 billion hryvnas.

On December 18, 2017, the supervisory board of the Privatbank approved the results of the re-assessment of its operational and non-operational property objects as well as financial leasing objects and their impact on the bank’s capital. The results of the re-assessment made it clear that the bank’s condition was worse than originally assumed at the moment of the bank’s nationalization. That entailed additional recapitalization amounting 16 billion hryvnas.

The recapitalization process at the Privatbank started on December 18, 2016, when the Cabinet of Ministers followed the proposal of the National Bank and decided to nationalize the Privatbank. Also, it was decided to recapitalize the bank; the recapitalization amounted 116.8 billion hryvnas and was implemented in two stages: in December 2016 and in February 2017.