Danylyuk: Cancellation of PrivatBank’s privatization could lead to breakdown of cooperation with IMF

"If the situation changes now, if they make concessions to those who withdrew money from Ukraine while the state nationalized the bank and invested $5.5 billion of taxpayers' funds in it, any compensation will have several consequences. The first is direct budget expenditures. They say about $2 billion – it will be a minus in the budget. These funds could be used for other purposes, but this is only a small portion. In fact, another thing will have the biggest effect: the investors will realize that Ukraine is no longer able to carry out deoligarchization and that there is an influence on institutions,” Former Secretary of the National Security and Defense Council of Ukraine Oleksandr Danylyuk said in an interview with BBC News Ukraine, answering the question about the consequences of the cancellation of PrivatBank’s privatization.

In his opinion, if the IMF refuses to cooperate with Ukraine, it will become a signal to investors. "It will be such a snowball effect. There will be no IMF, there will be no investment, no further privatization. There will be nothing to give impetus to the economy. Then what 40% [economic growth] in the next five years can we talk about?" Danylyuk stressed.

He also believes that the privatization of PrivatBank demonstrated that Ukraine could limit the impact of very influential oligarchs.

Danylyuk realized that the authorities were seeking a compromise with oligarch Kolomoisky after the visit of the IMF mission to Ukraine.

"The fact that they left without the final agreements was a very negative signal. And it is a pity that it happened only because of a problem with PrivatBank. I believe that a responsible position would be to find an answer to it as soon as possible," Danylyuk said, adding that the Ukrainian authorities have heard this signal from the IMF and are fully aware of the serious threats to the country.

"He [President Volodymyr Zelensky] understands the scale of the threat," the ex-official noted.

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