Not too big to fall?

The government statement about the nationalization of “PrivatBank” was a bad surprise for many Ukrainians. Society is being persuaded that Armageddon would have been in the financial market, if the authorities had not intervened in the situation with the private bank system. However, everything that happened seems to be one of the biggest scams in independent Ukraine. Who will be charged with that collapse and will have to repay the powerful bank?

Why the National Ukrainian Bank did not control the situation?

PrivatBank serves about 30% of the population of Ukraine. Since 2014 most of the trouble banks were closed after strict monitoring and requirements of capital increase. However, National Bank mysteriously hadn’t taken notice of the PrivatBank’s problems before the last week of 2016. Only then had there been revealed the 150 billion hrivna “hole” in the bank. PrivatBank have obtained millions of refinance from the State without any control since 2014. The banking giant, apparently, has turned into a “cash cow” of shareholders who actively remove deposits of clients to different fake loans to their own structures. It should be noted that the media of the former owner of Privatbank Igor Kolomoisky comment nationalization of assets loyally. If the oligarch had given the bank against his will, we would have observed real information hysteric. Did authorities and PrivatBank’s shareholders work together all the time? Probably, but, of course, this guess has no evidence. As well as the following assumption….


In some experts’ opinion, Privatbank was one of the main tools in the occupation of Crimea by Russia. There was a conspiracy between Russia and Privatbank which was obliged to block all accounts of Crimea people across Ukraine and make all them get money in the occupied peninsula only. But to return their costs, people had to get Russian citizens passports. That trick helped to legalize the annexation faster. At the same time if the Privatbank network had been closed in Crimea, it would have led to the collapse of the entire economic system at the peninsula.

Who will pay the bills?

As a result of the nationalization 53% of the Ukrainian banking market belongs to the state. In total “PrivatBank” issued $ 6 billion non-performing and unsecured loans for their own trusted commercial structures. This amount is equal to about 1/3 of the total gold and foreign exchange reserves of Ukraine.

On the first day after the nationalization it became clear that The National Bank transferred to “PrivatBank” 15 billion hryvnia for current cash transactions. The authorities promise that the next tranche for “PrivatBank” will not be taken from the budget, instead of that government bonds by nearly 117 billion hryvna will be released. National Bank will have to print money to redeem these bonds from the Ministry of Finance. So inflation increases. The Ministry of Finance returns the debt from budget and taxes. Thus every Ukrainian will pay from his pocket for the nationalization of “PrivatBank”.


Is it a kind of political agreement between Presedent Poroshenko and the owners of “PrivatBank”?

It appears that  Igor Kolomoisky’s media will provide loyal Information policy during upcoming parliamentary and presidential elections. For this the President, probably, will turn a blind eye to the fact that Kolomoisky has to repay huge loans of PrivatBank , not the state. The lawyer Rostisla Kravets will fill a lawsuit in court to prove the illegality of the nationalization, because the bank and the responsibility for it should be returned to businessmen. Kravets assure that PrivatBank ex-owners have sufficient assets, including the oil business and the media, which have to be nationalized to sell and pay off bank debts.

Olena Solodovnikova