Finance Ministry to file appeal against court ruling on PrivatBank

"On April 18, 2019, the District Administrative Court of Kyiv, based on a lawsuit of Ihor Kolomoisky, a former co-owner of PrivatBank, issued a ruling establishing the procedure for the withdrawal of insolvent PJSC CB PrivatBank from the market with the participation of the state as the one that violates the norms of the current legislation. The Ukrainian Finance Ministry does not agree with the above ruling and is preparing to file an appeal," the statement reads.

The ministry said that the decision to withdraw PrivatBank from the market with the participation of the state had been taken in accordance with the norms of the current legislation and it had been supported by the National Security and Defense Council and the Government of Ukraine in order to ensure financial stability and save citizens' funds. Making sure that all banks operating in Ukraine fulfill regulatory requirements and requirements for capital is crucial for ensuring the sustainability of the banking system and maintaining public confidence. PrivatBank's capital had a negative value, and the state became a guarantor of fulfilling all obligations to the bank's clients and saving the funds of citizens.

Having made the forced decision on nationalization and recapitalization of PrivatBank, the state invested UAH 155.3 billion in this bank. It was a difficult but necessary step to ensure the stability of the banking system and the economy as a whole.

Over the past two years, corporate governance standards that are in line with best international practices have been introduced, the risk management model has been improved, innovative technological solutions are being introduced, and positive financial results of PrivatBank's activity speak for themselves.

"The level of coverage of liabilities with highly liquid assets allows the bank to ensure a stable financial position, high payment discipline and timely fulfillment of requirements to clients. And now our task is to protect the state's investment, the contribution of every Ukrainian," the ministry said.

As reported, on April 18, 2019, Kyiv's District Administrative Court satisfied businessman Ihor Kolomoisky's claim against the National Bank of Ukraine, the Cabinet of Ministers, the Deposit Guarantee Fund and the National Commission on Securities and the Stock Market regarding the nationalization of PrivatBank. The case, which includes over 50 volumes, was considered from June 2017.

The procedure for nationalization of PJSC PrivatBank was declared groundless by the court and the one carried out with numerous violations of the current law at that time, resulting in unlawful state interference with the right of the bank's shareholders, including the plaintiff's right, to peacefully own property, which is a violation of both the requirements of national legislation, including the Constitution of Ukraine, and the provisions of international standards in this area.

The National Bank of Ukraine is also preparing an appeal against the court ruling.

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