PrivatBank shed more than $300 million after nationalization ruled illegal

FacebookFacebook MessengerTwitterLinkedInTelegramPinterestPocket

Ukraine’s PrivatBank shed more than $300 million of deposits after a Kiev court ruled in April that the nationalization of the country’s largest lender was illegal, the bank’s finance chief said on Tuesday, CNBC reports.

PrivatBank was nationalized as part of a clean-up of the banking system backed by the International Monetary Fund (IMF) and wrested the lender from Ukrainian tycoon and co-founder Ihor Kolomoisky in December 2016.

Ukraine’s central bank has appealed against the Kiev court’s ruling, seeking to overturn a decision that has raised fears that the loss of a key plank in Ukrainian reforms could endanger the government’s relationship with investors and international donors such as the IMF.

The reaction of depositors was to get “a bit nervous” said Anna Samarina, PrivatBank’s chief financial officer.

The bank suffered deposit outflows of 8 billion hryvnia ($303 million) across a number of currencies in the weeks after the ruling, Samarina said.

FacebookFacebook MessengerTwitterLinkedInTelegramPinterestPocket