PrivatBank’s head calls on Zelensky to stand behind lender’s rescue or risk capital flight

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Ukraine is at risk of capital flight and a plummeting currency unless President Volodymyr Zelensky stands behind the clean-up of the country’s biggest lender, the bank’s chief has warned, reports.

Petr Krumphanzl, who took over as PrivatBank’s chief executive in 2018, said there was a “real risk” that the bank could be returned to its former owners by the Ukrainian courts or that they could win the right to generous compensation under draft legislation before parliament.

For Ukraine’s multilateral lenders and foreign investors, the PrivatBank case has become a test of Mr Zelensky’s commitment to tackling corruption and reforming the economy. The IMF agreed a $5.5bn loan program for Ukraine in December but has made it contingent on Kyiv’s safeguarding the 2016 bank clean-up and the recovery of assets.

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