This is said in the statement by Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), released on Monday.
"Today’s decision of Ukrainian authorities to nationalize PrivatBank is an important step in their efforts to safeguard financial stability. This decision was taken to ensure the smooth operations of the bank given its systemic role in Ukraine’s financial system, and in view of insufficient efforts to strengthen its capital adequacy in recent months," the statement reads.
Lagarde stressed that ensuring that all banks operating in Ukraine meet capital and regulatory requirements was essential to maintain public confidence in the banking system and reinforce the banks’ ability to support productive activities necessary for the prosperity of the Ukrainian people.
According to the IMF Managing Director, “it is now important that the process of nationalization be followed by firm efforts to maximize the repayment of related-party loans, and the appointment of an independent management team to restore the bank’s viability, minimizing the cost to the state and taxpayers in line with existing legislation and international best practice.”
Lagarde assured that the IMF would continue to support Ukraine in its efforts to build strong institutions, enhance transparency, and advance structural reforms which are critical to achieve strong and sustainable economic growth.