Life after nationalization. What will happen to PrivatBank and its clients
Rumors confirmed
The Cabinet of Ministers and the National Security and Defense Council of Ukraine supported the nationalization of PrivatBank. A message about this on Sunday, December 18, appeared on the agency's website in the evening. "It becomes 100% state property," the Cabinet of Ministers said, assuring that this guarantees the bank's uninterrupted operation and the safety of funds in accounts. Previously, experts predicted this, but not before December 23.
The bank's transitional period begins on Monday, December 19th.It should be noted that the owner of PrivatBank, Igor Kolomoisky, was not in the Presidential Administration during the government meeting. He has not yet commented on the situation. Only Oleg Gorokhovsky, deputy chairman of the bank, spoke out about the nationalization.
"Did I know about this when I wrote my previous posts in which I refuted this? Of course not, I still do not really believe that this is happening to me. I will answer the most important question that worries our clients: with your money on current, deposit, card accounts, physical and legal entities, with investments in the "Service of profitable investments" nothing will happen. The bank will continue to work as usual," he wrote on his Facebook page.
Later it became known that ex-Minister of Finance Oleksandr Shlapak was appointed the new chairman of the board of PrivatBank. According to the government's plan, PrivatBank is going to be put up for sale after its condition is stabilized. "After the transition of PrivatBank to state property the share of state-owned banks in the banking sector will be quite significant. The state has no plans to own such a large part in the banking sector. Therefore, after the bank is fully stabilized, it begins to implement a strategic development plan, the state plans to sell this bank,” said Finance Minister Alexander Danilyuk.
The authorities are reassuring
President Petro Poroshenko recorded a special appeal to the population regarding the nationalization of Privatbank. "Indirectly, the entire financial and economic situation in the country depends on the state of affairs in this bank - how big it is, or, as experts say, systemic," Poroshenko admitted.
However, the president assured that the state assumes responsibility and guarantees clients the inviolability and integrity of their money. Poroshenko said that a new highly professional group of specialists had already been hired to manage the bank. European bank reconstruction and development.
"In order to strengthen the protection of Privatbank depositors, as an urgent matter, I submitted a bill to the Verkhovna Rada that provides additional guarantees for citizens' deposits in this institution. They will be the same as for Oshadbank - as for a bank, fully owned by the state," the president said. According to Prime Minister Volodymyr Groysman, the nationalization decision is designed to ensure the stability of the banking system and protect clients' money. He recalled that more than 3 million pensioners, 500 thousand students, 1 million 600 thousand socially unprotected citizens receive payments in PrivatBank.
The reaction of the Ministry of Finance and the National Bank
On Monday morning, the head of the Ministry of Finance, Alexander Danilyuk, and the head of the National Bank, Valeria Gontareva, spoke at a press conference on the nationalization of PrivatBank.According to Finance Minister Danilyuk, the nationalization of PrivatBank will bring Ukraine closer to receiving the next tranche from the Ministry of Internal Affairs. "This decision is important in the framework of our cooperation with the IMF, and after the next step - this is the adoption of the budget - we have completed two important stages of cooperation with the IMF. And this will also bring us closer to close cooperation with the IMF and to receive the next tranche," he said.
According to Danilyuk, the decision to nationalize PrivatBank was made taking into account its systemic importance in the banking sector of Ukraine. "This will, firstly, stabilize the bank, save the funds of almost 20 million PrivatBank depositors, and also ensure stability financial system countries. Thanks to the transfer to state ownership, the bank continues to operate. This allows depositors to have continuous access to their money," the minister assured.
At the same time, the head of the NBU, Valeria Gontareva, said that the owners of Privat themselves asked for nationalization.
According to Gontareva, "The NBU, realizing all the problems of Privatbank and considering its importance as a systemic bank for the health of the financial sector and the country's economy as a whole, could not wait longer and classified the bank as insolvent."
Also, according to her, the shareholders, unable to complete the capitalization program, sent a letter to the Cabinet of Ministers with a request for the state to enter the capital of PJSC Privatbank.
Gontareva stressed that PrivatBank's capital deficit had increased to UAH 148 billion.
"As of December 1 this year, the capital deficit of PrivatBank increased to UAH 148 billion, while the bank's liquidity decreased significantly. The bank did not comply with the mandatory reserve requirements for almost a year, and the bank's overdue debt to the regulator on stabilization loans amounted to UAH 14 billion, total debt at 19 billion hryvnia. Realizing all the problems of PrivatBank and the risks they create for the health of the financial sector and the country's economy as a whole, we could not wait longer," she said.
However, the head of the National Bank assured that the situation with the hryvnia exchange rate remains stable. “Will there be a devaluation? Every Ukrainian is now asking this question. But we want to assure, and I assure you that the situation is under control,” said the head of the regulator.
Suspension of corporate payments
"PrivatBank" for a day, from December 19, has already suspended the execution of payments by legal entities. It is only about corporate payments. The suspension is due to the procedure for changing control and peculiarities of the legislation, Victoria Strakhova, project manager for financial sector reforms at the National Reform Council, said on Facebook."There will be a stop for 1 day of corporate payments. This has nothing to do with liquidity, or with any other indicators of the bank," Strakhova noted and clarified that payments received on December 19 will be executed on December 20.
ATMs and terminals are working
Clients of Privatbank will not have problems accessing their funds - salaries, pensions, scholarships that go through this bank will work properly, Danilyuk and Gontareva assured.
"Clients will have free access to their current accounts and deposits. ATMs and terminals of PrivatBank, as well as other banks, continue to work," said Danilyuk.
Privatbank cards can be serviced at any ATMs in our country, Gontareva emphasized.
What will happen to Privat 24?
However, the fate of Privat24 online banking remains very vague.In any case, the head of the National Bank, Valeria Gontareva, could not give a direct answer to the question of what will happen to this service after nationalization.
Ownership of all software will be transferred to the state, including the Privat24 system, Gontareva assured.
At the same time, she was unable to predict the fate of the Privat24 system in the future. According to her, now the team of the NBU and the Guarantee Fund, more than 100 people work in Dnipro, determining the ownership of all software.
“I can’t tell you about the Privat 24 program, but if you look at Oschad 24 or Raifazen 24, the programs don’t differ much,” Gontareva said.
It should be noted that at the moment the service is operating normally. Operations in Privat24 are still going well, only transactions of legal entities are not carried out.
Nationalization of Privatbank - all the details (updated)
Ukraine nationalized Privatbank. What are the consequences for bank customers? What should investors do?
The Cabinet of Ministers and the National Security and Defense Council of Ukraine supported the nationalization of the largest commercial bank Ukraine "Privatbank".
The owner of Privatbank, Igor Kolomoisky, was not in the Presidential Administration (AP) of Ukraine during the government meeting.
Anatoly Guley, head of the board of the Ukrainian Interbank Currency Exchange, said on his Facebook page: "A decision has been made to nationalize Privatbank. Briefing by the Minister of Finance tomorrow morning."
First, on the evening of December 18, a meeting of the Cabinet of Ministers was held, which was held in the Presidential Administration, after which a meeting of the National Security and Defense Council was held.
Information that the largest commercial Bank Ukraine - "Privatbank" - can be nationalized, runs on the banking market for a long time. Privatbank stated that talk of nationalization was just an attack on the bank.
The Cabinet of Ministers decided to transfer Privatbank PJSC to 100% state ownership.
According to the press service of the government, the Cabinet of Ministers at a meeting on Sunday considered issues of ensuring stability in the country's financial system.
"Taking into account the results of the meeting of the Council national security and defense of Ukraine, the government supported the proposal of the National Bank and the Financial Stability Council on the transfer of Privatbank PJSC to 100% state ownership," the statement says.
It is envisaged that the state, represented by the Ministry of Finance, will become the owner of 100% of the shares of Privatbank PJSC and guarantee the uninterrupted functioning of this institution and the preservation of the funds of its clients.
The government of Ukraine stressed that these actions are taking place in strict coordination with international financial institutions and with their support.
NBU Chairman Valeria Gontareva, who participated in the government meeting, and Finance Minister Oleksandr Danilyuk informed members of the Cabinet of Ministers that private shareholders of Privatbank had addressed the government with a proposal that the state, in the interests of the bank's clients, become its full owner.
"The transitional period begins on December 19. The state will ensure a smooth transition, stable operation of this institution in the usual mode for its clients," the Cabinet of Ministers noted.
The government proceeds from the fact that the responsible decision it made saved both Privatbank and the entire banking system, the statement said.
On Monday at 8-30 am Finance Minister Oleksandr Danilyuk and head of the National Bank Valery Gontareva will talk about the details of the decisions made at a joint press conference. In the morning, separate statements on this subject will be made by President Petro Poroshenko and Prime Minister Volodymyr Groysman.
After the nationalization of PrivatBank, Oleksandr Shlapak, the former Minister of Finance of Ukraine, will be appointed Chairman of the Board.
Oleg Gorokhovsky, First Deputy Chairman of the Board of PrivatBank, wrote about this on his Facebook page.
"The bank will have a new chairman of the board, Alexander Shlapak, who will form a new team of top managers. The old team is ready and will provide them with all kinds of support," Gorokhovsky said.
At the same time, he noted that nothing will happen to the customer's money.
"Nothing will happen to your money on current, deposit, card accounts, individuals and legal entities, with investments in the Profitable Investment Service. This was a key condition for negotiations on a change of ownership," Gorokhovsky wrote.
Gorokhovsky also said that PrivatBank's ATM network has been giving out more than 2 billion hryvnias a day in recent days.
"Even though previous records were barely 1.5 billion on peak days," he said.
Already worked in Privatbank from 1993 to 1998, when Serhiy Tigipko was the head of the bank. He served as director of the Lviv branch, director of the Western Main Department and deputy head of the bank's council.
In 1998, Shlapak, together with Tigipko, joined the government as its adviser, when Tigipko himself served as Vice Prime Minister for Economic Affairs.
From July 2001 to November 2002 - Shlapak served as Minister of Economy in the government of Anatoly Kinakh. From 2003 to 2005, Shlapak worked as the deputy head of the NBU, who was then Tigipko. From 2005 to 2006, Shlapak worked as head of the State Treasury. From 2007 to 2010, Shlapak was one of the leaders of the Secretariat of President Viktor Yushchenko. Alexander Shlapak served as Minister of Finance in the Cabinet of Ministers of Arseniy Yatsenyuk from February 27, 2014 to December 2, 2014.
What will happen after the nationalization of Privatbank? Questions of this kind were expressed on his Facebook page by the director information technology"Privatbank" Dmitry Dubilet.
After the nationalization of Privatbank, all funds on current and deposit accounts of all individuals and legal entities will be safe and sound, and the bank will operate in a standard mode.
“Dear friends, today PrivatBank is becoming a state-owned bank. This is unexpected news (including for me, believe me), but there is no need to worry,” he wrote.
According to Dubilet, all funds on current and deposit accounts of all individuals and legal entities will be safe and sound. This is guaranteed by the state.
Reasons for the nationalization of Privatbank.
Dubilet explained why this happened.
"Since the war began, our bank has survived seven information attacks. Any other bank would not have survived any of them. But the last attack, which began a week ago, was the most severe. Every day we updated the records for the number of funds issued by panicked customers at ATMs and branches," the banker wrote.
The latest attack, according to Dubilet, which played a key role, was a news release on Inter, which said that PrivatBank would suspend all payments on Monday.
"Actually, the decision to voluntarily and peacefully transfer the bank into the possession of the state was made exactly at the moment when we realized that we might not survive this information attack, and that our clients could be under threat," Dubilet said. He also noted that the bank will continue to work in a standard mode.
“It’s scary to admit, but I don’t think that Clients or employees will feel a special difference in the work of the bank. Everything works like clockwork for us. The same professionals remain in the head office and branches. A unique corporate culture has been created in the bank. will disappear with our departure," Dubilet wrote.
The money of Privatbank depositors is safe - Minister of Finance of Ukraine Oleksandr Danylyuk. He wrote about this on his Facebook page.
"The government has decided to transfer PrivatBank to state ownership. Depositors' money is safe and protected by the state," he said.
Danilyuk noted that the bank is operating as usual. He promised to report the details at a joint briefing with NBU Chairman Valeria Gontareva on December 19 at 8:30.
Privatbank to suspend corporate payments for a day, which is a technical necessity due to the procedure for changing control and legislation.
Victoria Strakhova, project manager for financial sector reforms at the National Reform Council, announced this on her Facebook page.
“Clients of PrivatBank are really used to instant payments, so the news that payments received on the 19th will be executed on the 20th causes dissatisfaction. Yes, there will be a stop for 1 day of corporate payments. This has nothing to do with liquidity or any other the bank's performance. This is a technical necessity due to the procedure for changing control and the peculiarities of the legislation," she said.
Strakhova also recalled that according to the law, interbank transfers are made within up to three business days, and intrabank - up to two business days.
Clients of "Privatbank" will not have problems with access to funds - authorities.
Clients of "Privatbank" will not have problems with access to their funds, salaries, pensions, scholarships that go through this bank will work properly.
Finance Minister Oleksandr Danilyuk and the head of the National Bank Valery Gontareva assured this at a joint press conference on Monday morning.
"Yesterday, the government made a decision on the entry of the state into the capital of Privatbank. From now on, the bank belongs to the state represented by the Ministry of Finance. This decision was made taking into account the systemic importance of this largest bank in the country," Danilyuk said.
According to the Minister of Finance, "thanks to the transfer to state ownership, the bank continues to operate"
"This allows depositors to have uninterrupted access to their money. For a procedural reason, services for clients - legal entities will be temporarily suspended for 1 day. But steps are already being taken to ensure that this has a small minimal impact on their business. There are currently no other restrictions for clients and does not happen," said Danilyuk.
“Clients will have free access to their current accounts and deposits, ATMs and terminals of Privatbank, as well as other banks, continue to work and accept cards, and settlements will continue,” the minister assured.
According to him, the government allocates the necessary amount of money to stabilize the bank, "funds are provided for this in the budget" and "the budget remains balanced."
In turn, Gontareva noted that "yesterday the National Bank classified Privatbank as insolvent," and the Cabinet of Ministers supported the initiative to transfer the bank to 100% state ownership. According to her, this is "the only way to save depositors' funds and save the financial system."
"This will allow the country to guarantee all depositors their savings, and business - its funds. This will also eliminate threats to the country's financial stability," the head of the National Bank said.
"In this way, we protect more than 20 million Ukrainian citizens who are served and save money in this bank. First of all, we are talking about 3.2 million pensioners, more than 500 thousand students and 1.6 million other socially vulnerable citizens," she said.
"500,000 individual entrepreneurs, as well as 600,000 enterprises from small to large, will not lose their funds and will be able to continue to work smoothly, and 3.6 million workers will retain access to their salaries, in particular, 2.2 million workers budget institutions and 1.4 million workers commercial organizations", - said Gontareva.
She also assured that access to deposits and terminals will continue.
The NBU does not yet know how Privat 24 will work.
Chairman of the National Bank Valeria Gontareva failed to predict the fate of the Privat 24 system after the nationalization of Privatbank.
She said this at a briefing on Monday, answering questions from journalists.
According to her, now the team of the NBU and the Guarantee Fund, more than 100 people work in Dnipro, determining the ownership of all software.
"I can't tell you about the Privat 24 program, but if you look at Oschad 24 or Raifazen 24, the programs don't differ much," Gontareva said.
At the same time, she again stressed that Privat Bank is 100% owned by the state, and the population's funds are protected.
Also, the Ministry of Finance and the National Bank promise to hold daily briefings and explain the current situation.
After Privatbank is stabilized, Ukraine will sell it.
Finance Minister Oleksandr Danilyuk announces the intention of the state authorities to sell the nationalized Privatbank.
"After the transfer of this bank to state ownership, the fate of state-owned banks in the banking sector is quite significant. The state does not plan to be the owner of such a large share in the banking sector," he said at a press conference.
“Therefore, after the bank stabilizes completely and begins to implement the strategic plan, the state plans to sell this bank. And this will create normal competitive conditions in the market. Sell on transparent terms,” the finance minister said.
The minister also said that "the liquidation of Privatbank's deficit will take place in several stages," first, the Ministry of Finance will issue bonds in the amount of UAH 43 billion.
"It is important that the owners themselves apply to the government with a request to enter the capital of the bank, and also undertake obligations to facilitate the smooth transfer of the bank to state ownership, as well as obligations to restructure the portfolio after the transition of the bank to state ownership, which compensates for the costs to the state, incurred during the transfer of the bank to state ownership," he said.
In turn, the head of the National Bank, Valeria Gontareva, noted that "the provisional administration is already working in this bank."
"But it doesn't matter, because we are not suspending the bank's operations," she stressed.
"The Ministry of Finance must decide on the management within 2 days, must re-register and buy this bank for 1 hryvnia. After that, the temporary administrator must convert these obligations into capital," Gontareva said.
Poroshenko: We guarantee the safety and integrity of deposits to Privatbank customers.
The state takes responsibility and guarantees the inviolability and integrity of their money to Privatbank clients.
This was announced on Monday by the President of Ukraine Petro Poroshenko, the press service of the head of state informs.
"In the current situation, the authorities have made the only right saving decision - to save your money and increase it in a successful bank," the head of state said.
Poroshenko explained that the decision to nationalize was based on saving the bank and ensuring ownership of its resources for everyone who placed them in this institution.
"The measures that private owners and top managers have taken over the past two years have not been enough," the president stressed.
According to him, the government eliminated "a direct threat to both the bank itself and the entire banking system of Ukraine."
"The problems of Privatbank have been accumulating for years. In the conditions of war and economic crisis they got even worse. The shareholders did not find the resources to carry out the mandatory additional capitalization program. And the current business model, obviously, has exhausted itself," Poroshenko said.
He stressed that the only way to save the bank and thus ensure the safety of its clients' funds is to transfer it to the state.
Thus, the state represented by the Ministry of Finance became the new owner.
"A new highly professional group of specialists has already been hired to manage the bank, the formation of which has also been joined by the European Bank for Reconstruction and Development. This team, the National Bank, and the Ministry of Finance have been tasked with ensuring a smooth transition, stable operation and customer service as usual," – the President stressed.
First of all, the new management should take care of the uninterrupted service of socially sensitive customers. But in general, no one should suffer from the change of ownership.
Poroshenko also said that in order to strengthen the protection of Privatbank depositors, as an urgent matter, he submitted to the Verkhovna Rada a bill that provides additional guarantees for citizens' deposits in this institution.
“I appeal to you, dear clients of Privatbank, to remain calm. The new administration is already taking all the levers of control into its own hands. Right now, in these hours and minutes,” the President of Ukraine said.
Poroshenko introduced a law on additional guarantees to Privatbank depositors.
President Petro Poroshenko submitted a bill to the Verkhovna Rada, which should give additional guarantees to Privatbank depositors.
Draft law on amendments to the law "On banks and banking"regarding the state guarantee of deposits individuals registered on December 19 under the number 5553.
The text of the document is not yet available on the website of the Parliament. It was transferred to the profile committee.
After the nationalization of PrivatBank, the dollar exchange rate in Ukraine jumped sharply.
On December 19, foreign exchange trading started at the close of trading on Friday: the interbank market opened at UAH 26.28-26.33, but after that the quotes went up very quickly - by 27 kopecks at once.
"The non-cash rate reached UAH 26.40-26.60/$," Yury Grinenko, head of dealing operations at Raiffeisen Bank Aval, told UBR.ua.
Financiers attribute this to the panicked mood of PrivatBank depositors, who, despite the assurances of the government (the new owner of the bank) and the National Bank, are storming ATMs and cash desks of the financial institution.
Recall that on December 16, currency trading ended with a decrease in the dollar purchase rate by 2 kopecks, the selling rate remained at the level of Thursday. Interbank closed within 26.28-26.33 UAH/$.
Expert: Nationalization of PrivatBank is a reason to issue an additional hryvnia issue.
The nationalization of PrivatBank actually indicates that the government has no agreement with the IMF to receive the next tranche.
This was stated by financial expert Alexander Dubinsky on his Facebook page.
“In fact, this is a way to print a fucking mountain of hryvnia without control by the IMF and the need to replenish foreign exchange reserves (now the issue is underway with the currency entering). This scenario, just says the opposite - that the agreements with the IMF in There will be no near future. And reforms, respectively, too," he said.
"Therefore, the nationalization of Privat was chosen with huge budget payments, the essence of which is a large-scale deriban of the bank's assets and the injection of the necessary amounts into the economy through the monetization of government bonds of Privatbank." - added the expert.
What does the nationalization of Privatbank mean?
The Committee of Economists of Ukraine does not exclude that even "soft" nationalization (meaning that an agreement has been reached between Poroshenko and Kolomoisky) may be superimposed by Ukrainian "features".
"In civilized countries, in the event of a bank's nationalization, depositors have no reason to be afraid, as they move from a troubled bank to a more reliable or state-owned one. But in Ukrainian conditions, it is difficult to predict the situation, since the NBU does not adhere to civilized rules, but simply liquidates or nationalizes banks, and the interests of depositors are limited to the amount provided for under the Deposit Guarantee Fund scheme, that is, UAH 200,000. All that is higher, depositors lose," Andriy Novak, chairman of the Committee of Economists of Ukraine, explained.
The security of customer funds was confirmed by Oleg Gorokhovsky, First Deputy Chairman of the Board of the Bank. "The decision to voluntarily and peacefully transfer the bank into the possession of the state was made at the moment when we realized that we might not survive this information attack, and our clients could be under threat," Gorokhovsky said.
According to him, "nothing will happen to money in current, deposit, card accounts, individuals and legal entities," since this was a key condition for negotiations on a change of ownership.
Unlike the provisional administration, nationalization does not provide for card blocking. “The maximum is to stop payments for a couple of days ... If there are more than a couple of days, it will be very strange,” explained economist Andrei Blinov.
What will happen to Privat24?
By the number of active users, Privat24 has more than 6 million customers, of which more than 2.5 million use mobile version Privat24. And almost all of them are concerned about the fate of this service. Earlier there was information that Privat 24, as such, will not get to the state.
However, experts interviewed by Vesti consider this option unlikely. "Privat24 has always been and will be. People will be able to use it safely," Okhrimenko is sure.
"Privat24 is associated with payment system jar. Perhaps there will be no blocking, just the actual transfer of funds will occur on the next business day," Blinov added.
What will happen to Privat deposits?
The same as with cards and salaries - nothing. "In fact, all that will change in the bank is the chairman of the board. But how many ordinary Ukrainians know the name of the chairman of the board in their bank? Here was Ivanov, and now Sidorov will become - well, what difference does it make to an ordinary person?" Okhrimenko: Another thing is that the quality of work may decrease due to the new management, the very enthusiasm of the workers National Bank you come - and you can stand in line for half an hour while the cashier is talking on the phone.
"If the bank will work, then what's the point of taking a deposit from there, losing interest at the same time?" Blinov added.
What should PrivatBank clients do?
Do not panic. All the experts interviewed by Vesti assure that neither the government nor the National Bank will allow such a giant as Privat. At most, during nationalization, the bank will not work for a couple of days.
“Therefore, I would recommend people to make all payments now (utilities, for example), without putting things off indefinitely, and withdraw some cash with the expectation that it will last for several days. And in no case do not fall for messages like "I will help you withdraw money from Privat for a certain percentage" - these are definitely scammers," Blinov summed up.
Using Corezoid not only optimizes the IT budget, but also speeds up the creation/modification of products and services by an order of magnitude, to put it simply, it allows you to “forget” about IT and focus on your core business.
There are more and more state-owned banks in our country. IT in them, to put it mildly, is quite archaic and fragmented. I would transfer all single platform(bankers will only say thank you), and in a year he modernized the entire public sector to a super-world level (I understand that this is a Christmas story).
How do you plan to further develop Corezoid?
Every Jobs should have their Next and Pixar. We will ensure continuity, transfer of affairs, and forward, conquer the world.
We are talking about the departure of the Corezoid team from the IT division of PrivatBank, do I understand correctly?
Jobs is a person, not a team. All remain in their places until the order (if any). There are plenty of people who know how to work at Corezoid in the bank. Even call center operators can put together a simple bot. If you are trying to see the outcome and paint a picture of “everything is lost”, then this is not about us - we always leave order behind ourselves.
So, to summarize, is Corezoid an independent American company that will continue to work and promote its product on the global market?
Corezoid is an independent American hosting company that continues to operate promotes your product in the global market.
On what conditions will the work of the state PrivatBank and private Middleware be built - the subject of negotiations between the new management of the bank and the company?
Now there is an old contract with very wholesale prices for PrivatBank. There is no economic need to re-sign it, but you need to understand that if the hosting bills are not paid on time, then everything will turn off automatically.
Will you, Alexander, leave PrivatBank together with other top managers after the transfer of affairs to a new team?
Yes, if you pass it on to someone. While guests confuse marketing with technology, there is nothing to transfer to anyone.
Will the rest of the IT staff continue to work in their places if they do not decide to leave on their own or are not fired by the new management?
Quite right. All of them are free-thinking people with vast experience and authority in the industry: it is worth raising your hand - and you are already on new job. In fact, everyone has already received more than one offer, including from the CIS countries, and there is a huge risk of rapid washing out of technological competence from the largest state bank.
Will you remain in the role of CEO of Corezoid / Middleware and continue to develop it as a product company, including on the Ukrainian market?
PrivatBank announced that it had invested in Corezoid. Can you tell what this means? Who invested, what funds, for what share?
"PrivatBank" is a collective image of the holding. Foreign companies invest.
Afterword
Privat24 still belongs to the state since yesterday. But it was not in vain that the head of the NBU could not clearly answer the question about the ownership of the service.
Privat's IT infrastructure uses its own code with the integration of a host of different services, including the services of Amazon, Google and other companies. Some of this is tied together thanks to the Corezoid OS, which, like the products of foreign corporations, is not owned by the state. Although the algorithms in Privat's account in Corezoid belong to him (and therefore to the state).
Another important asset of PrivatBank, as in any project, is the team that created and developed all these services. As long as she stays in the bank.
All systems can work without this team, under the control of new specialists. The question is whether the new management will be able to attract the necessary professionals and monitor the banal payment and contracts for all third-party services on which the bank's IT system is built.
Partner participated in the preparation of the material law firm Axon Partners Dmitry Gadomsky, lawyer Ekaterina Mamyko, website editor Olga Karpenko.
Noticed an error? Select it and click Ctrl+Enter to let us know.
Late on Sunday evening it became known that .
The Minister of Finance of Ukraine Oleksandr Danilyuk said on his Facebook page that nothing threatens the bank's clients:
“The government has decided to nationalize PrivatBank. Depositors' money is safe and protected by the state. The bank is operating as usual,” he wrote.
PrivatBank is going to be sold
“Thanks to the transfer of PrivatBank to state ownership, the bank continues to operate. This makes it possible to continuously have access to your funds. For procedural reasons, services for clients of legal entities will be suspended for one day, December 19. But measures are already being taken to ensure that this has a minimal impact on their business. There are currently no other restrictions for clients. Clients will have free access to their current accounts and deposits, ATMs and terminals of PrivatBank and other banks continue to work,” said Minister of Finance of Ukraine Oleksandr Danylyuk.
“Therefore, after the bank stabilizes completely, starts to implement the strategic plan, the state plans to sell this bank. And this will create normal competitive conditions in the market. Sell for transparent conditions,” said the Minister of Finance.
What opportunities does the transfer of PrivatBank to the state imply
- stabilization of the bank (money from the budget of Ukraine has already been allocated for this);
- preservation of funds of about twenty (million - ed.) depositors of PrivatBank;
- ensuring the stability of the country's financial system.
PrivatBank turned out to be insolvent
“Yesterday, the NBU classified PrivatBank as insolvent and turned to the government to transfer this bank to state ownership. We are convinced that the transition of the bank into state ownership is the only way to save depositors' money and save the financial system. Thus, we protect those who use the services of the bank. And this is 3.2 million pensioners, more than 500 thousand students, 1.6 million other socially unprotected citizens. 500,000 entrepreneurs will not lose their money and will continue to work without interruption. As well as 600 thousand enterprises. 3.6 million workers will keep their salaries (2.2 million state employees and 1.4 million employees of commercial organizations),” Gontareva said.
What will happen to Privat24?
Chairman of the National Bank Valeria Gontareva was unable to predict the fate of the Privat 24 system after the nationalization of PrivatBank. According to her, now the team of the NBU and the Guarantee Fund, more than 100 people work in Dnipro, determining the ownership of all software.
The Cabinet has made a decision. "Goes into 100% ownership of the state," the message on the website of the Cabinet of Ministers says.
According to the department, the new shareholder - Ukraine - guarantees the bank's uninterrupted operation and the safety of funds in the accounts.
Nationalization takes place "with the support of international organizations", however, these structures are not listed in the message.
The transitional period began today, December 19th. Early in the morning, special appeals to Ukrainians were made by President Petro Poroshenko, Prime Minister Volodymyr Groysman, Finance Minister Oleksandr Danylyuk, and NBU Governor Valery Gontareva.
Korrespondent.net chronicles the most important events in the nationalization of Privatbank - the largest financial institution countries.
PrivatBank officially became state-owned - nationalization completed
On December 21, the Deposit Guarantee Fund and the Ministry of Finance of Ukraine signed an agreement on the sale of 100% of PrivatBank shares. From now on, the owner of 100% of the bank's shares is the state represented by the Ministry of Finance.
However, this will not always be the case - the head of the NBU, Valeria Gontareva, has already announced the date for the sale of Privat by the state - this can happen no later than in 3 years.
All payments in the bank have been resumed since December 20. Ukrainians are recovering from the shock and have already made deposits in Privat. So, for the day on December 20, the bank issued almost two thousand new deposits.
Nevertheless, record amounts are still withdrawn from the cards. On December 21, 1 billion UAH was withdrawn from Privat cards - and this is a monthly rate!
IMF approves
The International Monetary Fund welcomes the decision to nationalize PrivatBank, the fund said in a statement.
"Today's decision by the Ukrainian authorities to nationalize PrivatBank is an important step in their efforts to maintain financial stability," IMF Managing Director Christine Lagarde was quoted as saying.
She believes that ensuring that all Ukrainian banks comply with NBU regulations is essential to maintaining public confidence in the banking system.
The IMF pledges to continue to support Ukraine in its efforts to build strong institutions, increase transparency, and advance structural reforms.
Digit of the day
18 million individuals are served by Privatbank
People run for cash
Every day, people withdraw 2 billion hryvnias from accounts in Privatbank, which was not even during the period of active hostilities, said Oleksandr Dubilet, who was the chairman of the board of Privatbank.
"We have loaded all ATMs, ATMs continue to work. And this is at a time when the NBU has not yet given a penny," Dubilet said.
He promised to make the process of transferring the bank to the state painless, but added that "it will not be possible to make it seamless."
Dubilet stressed that at the moment Privat's clients have no problems.
At the same time, he reiterated information attack on the bank, but refused to answer the question of who is behind this attack. "History will judge everyone," the head of Privatbank's board of directors said.
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Shlapak will be supported
Dubilet noted that he had already communicated with the new chairman of the board Alexander Shlapak and recalled that the Ministry of Finance had decided to transfer salary project to Privatbank.
According to Dubilet, Shlapak is a very experienced manager. "He worked at Privatbank<...>he is respected, the bank will work with him and support him," Dubilet said.
Bank position
The head of the board of Privatbank Oleksandr Dubilet, during a briefing in Dnipro, said that the assessment of insider loans in Privatbank's portfolio at 97%, voiced by the head of the NBU Valeria Gontareva, is an exaggeration.
Also, Dubilet explained what happened to the bank's portfolio during these two years.
"In fact, in dollar terms, the bank's portfolio has halved. A lot of loans have been returned. If you look at what deposit outflows we had, it's about UAH 70 billion, even more. They were refinanced by the NBU by 38%," Dubilet said.
According to him, in order to keep the conditions of deposit outflows, the bank reduced its loan portfolio and, of course, extinguished the most best loans and not the worst loans.
Inventory
In Privat, the recalculation of balances on customer accounts has begun and Money. Head office, all its services and structural units work in a regular mode, however, technical breaks are possible in the branches of the bank due to the inventory that has begun.
In this regard, there are already concrete numbers:
- all expenses received by the bank financial operations accounts will be executed starting from 9:00 on December 20;
- card debit transactions (for corporate cards and Account Key) are also temporarily not served;
- all credit operations(receipts to cards and accounts) work in standard mode.
Everyone wins, except ordinary citizens
The nationalization of Privatbank is beneficial to everyone, except for Ukrainian taxpayers, said Kateryna Nazimko, President of the Bank Protection Association. In her opinion, it is on the shoulders of the Ukrainians that the payment for the additional capitalization of PrivatBank will fall.
“At the same time, the bank’s shareholders secured additional preferences from the state. And the Cabinet of Ministers itself will easily resell the financial institution in the near future to some foreign investors which creditors will impose on him," Nazimko said.
Creative from the Ministry of Finance
The Ministry of Finance of Ukraine continues to amuse with its creative advertising.
After the comic about the Budgetman, in which the Ministry of Finance praised the budget for the next year, the department released a cartoon about the nationalization of Privatbank.
The video says that systemic problems were discovered in the bank, its owners asked for help and the state supported them.
Happy in Europe
President of the European Bank for Reconstruction and Development Suma Chakrabarti supported the decision to nationalize Privat. This will protect depositors and clients, the banker is sure.
He also recalled: the nationalization of systemic banks allowed developed countries protect their economies financial crisis. "In the case of PrivatBank, a respectable Western company will act as government advisers in managing the bank. The EBRD is, of course, also ready to offer cooperation in finding optimal solution for PrivatBank," the head of the EBRD said.
EU High Representative for Foreign Affairs and Security Policy Federica Mogherini noted that the EU supports the Cabinet's decision. "Congratulations on this important and courageous decision to nationalize PrivatBank," she said.
The situation with Privat 24
Privatbank reports that the bank's online services, incl. system "Privat24", became the property of the state.
This was written by the first deputy chairman of the board of the bank Oleg Gorokhovsky on Facebook.
More memes on the nationalization of Privatbank.
Groisman's address
The Prime Minister also spoke about what he thinks about the nationalization of Privatbank.
Of course, he spoke about concern for the population.
Poroshenko's message
President Petro Poroshenko recorded a special appeal to Ukrainians regarding the nationalization of Privatbank.
"Indirectly, the entire financial and economic situation in the country depends on the state of affairs in this bank - how big it is, or, as experts say, systemic," Poroshenko admitted.
The state guarantees the clients of PrivatBank the inviolability and integrity of their money, the president assured.
"The old, private owners, which is of fundamental importance for us, have fixed a responsible position in letters to the government and the National Bank. It is written there in black and white that they recognize the need and expediency of an extraordinary step and fully support the transfer of Privatbank to state ownership," he said. Poroshenko.
A new professional group of specialists has already been hired to manage the bank, and the EBRD has also joined in its formation.
"In order to strengthen the protection of Privatbank depositors, as an urgent matter, I submitted to the Verkhovna Rada a bill that provides additional guarantees for citizens' deposits in this institution. They will be the same as for Oshadbank - as for a bank, fully owned by the state," he said. the president.
“I appeal to you, dear clients of PrivatBank, to remain calm,” the president said.
ATMs and terminals continue to work
Privat's clients will have no problems accessing their funds - salaries, pensions, scholarships that go through the bank, and will continue to act properly.
Finance Minister Oleksandr Danilyuk and the head of the National Bank Gontareva assured this.
"From now on, the bank belongs to the state represented by the Ministry of Finance... This will help stabilize the bank," Danilyuk stated.
Clients will have free access to their accounts and deposits, and PrivatBank's ATMs and terminals continue to work, he noted.
Privat cards can be serviced at any ATMs in our country, Gontareva assured. From Monday, the NBU is ready to support Privatbank with liquidity if necessary.
What will happen to Privat 24
Ownership of all software will be transferred to the state, including the Privat24 system, Gontareva said.
At the same time, she was unable to predict the fate of the Privat24 system in the future. According to her, now the team of the NBU and the Guarantee Fund, more than 100 people work in Dnipro, determining the ownership of all software.
"I can't tell you about the Privat 24 program, but if you look at Oschad 24 or Raifazen 24, the programs don't differ much," Gontareva said.
The owners failed to cope with capitalization
Danilyuk and Gontareva said that the owners of Privat themselves asked for nationalization.
On the evening of December 18, the National Bank of Ukraine declared Privatbank insolvent, Gontareva said.
The NBU, realizing all the problems of Privatbank and considering its importance as a systemic bank for the health of the financial sector and the country's economy as a whole, could not wait longer and classified the bank as insolvent.
"Therefore, the regulator approached the government with a proposal to transfer this systemically important bank to state ownership," the head of the regulator said.
Also, the shareholders, unable to complete the capitalization program, sent a letter to the Cabinet of Ministers with a request for the state to enter the capital of Privatbank PJSC.
"By this letter, the shareholders undertook to restructure loans provided by the bank to legal entities, taking into account the requirements of the National Bank, by July 1, 2017," she said.
Gontareva said that the bank's owners agreed to cooperate with the state, "we have 100% cooperation."
How much money is needed for Privatbank
The head of the NBU and the Minister of Finance emphasize most of all: there is no need to worry, panic, the state has everything under control. The authorities will not allow inflation and currency fluctuations.
The Ministry of Finance and the National Bank estimate the need for Privatbank's capital at UAH 148 billion.
"For more than two years, the National Bank has been working with the shareholder in the direction of developing and implementing an additional capitalization plan. However, there was no plan. At the same time, the National Bank established that PrivatBank's total capital requirement was UAH 148 billion," the statement says.
As the Minister of Finance noted, the decision will protect more than 20 million citizens who keep their funds in the bank and use its services.
"First of all, we are talking about 3,200,000 pensioners, more than 500,000 students and 1,600,000 other groups of the population," Danilyuk said.
The National Bank does not expect a significant outflow of deposits from PrivatBank.
The National Bank denies a possible rise in prices and devaluation of the hryvnia as a result of the nationalization of Privatbank.
Sell after nationalization
After stabilization, the state plans to sell Privatbank.
"After the bank stabilizes completely, the state plans to sell this bank. And this will create normal competitive conditions in the market. Sell on transparent terms," the finance minister said.
"There are no grounds for concern," Gontareva said in parting.
The NBU promises another briefing today.
Special briefing
At 8:30 a.m., a press conference about the situation with Privatbank was to begin in the Cabinet of Ministers.
There are a lot of people who want to get there.
Video of the briefing. All news from it will promptly appear in this article.
While everything is working:
And, of course, they joke a lot.
The right decision - ex-minister
Former Economy Minister Bohdan Danylyshyn believes that the nationalization of Privatbank is the right decision.
"AT modern conditions the decision on Privatbank is responsible, which will create a reliable foundation for the further work of both Privatbank and the entire banking system of the country. PrivatBank is a systemic bank, important for the financial system of the state and the largest savings bank countries. I believe that this is the right decision of the state authorities and the National Bank at the current stage of the country's development," he wrote.
Danylyshyn noted that such banks as Oschadbank, Eximbank and others owned by the state are reliable and have earned the trust of depositors.
"The state, represented by the Ministry of Finance, will become the owner of 100% of the shares of PJSC Privatbank and guarantee the smooth functioning of this institution and the preservation of the funds of its clients. This is a guarantee that all deposits and savings are fully preserved," he wrote.
Is Trump to blame here?
An original opinion about the reasons for the Nationalization of the bank was expressed by MP Sergei Leshchenko.
In his opinion, the nationalization of Privatbank is a consequence of Donald Trump's victory in the US elections, as well as Igor Kolomoisky's way to solve his problems at the expense of the state.
According to him, the arrival of Trump means that no one else will give money to Ukraine "for beautiful promises and tears of a kleptocrat about the" Maidan ideals.
"And there will be no more Biden who would call Poroshenko for weeks, persuading him to fire Shokin or introduce electronic declarations. Starting in January, things will be very pragmatic. And the IMF program will continue only in exchange for the strict implementation of their requirements. Where the nationalization of Privatbank has been the main point for six months now," the deputy wrote.
Not a stranger
It is worth noting that the new chairman of the board of Privatbank Alexander Shlavak is not a stranger to the bank.
Shlapak had already worked at Privatbank from 1993 to 1998, when Sergei Tigipko was the head of the bank.
He served as director of the Lviv branch, director of the Western Main Department and deputy head of the bank's council.
In 1998, Shlapak, together with Tigipko, joined the government as its adviser, when Tigipko himself served as Vice Prime Minister for Economic Affairs.
From July 2001 to November 2002 - Shlapak served as Minister of Economy in the government of Anatoly Kinakh.
From 2003 to 2005, Shlapak worked as deputy head of the NBU, who was then Tigipko.
From 2005 to 2006, Shlapak worked as head of the State Treasury. From 2007 to 2010, Shlapak was one of the leaders of the Secretariat of President Viktor Yushchenko.
After the Revolution of Dignity, Alexander Shlapak served as Minister of Finance in the Cabinet of Ministers of Arseniy Yatsenyuk from February 27, 2014 to December 2, 2014.
Suspension of payments
Privatbank, due to the technical necessity caused by the procedure for changing control and the peculiarities of the legislation, will suspend the execution of payments by legal entities for a day.
"There will be a 1-day stoppage of corporate payments," said Victoria Strakhova, project manager for financial sector reforms at the project office of the National Reform Council.
The Ministry of Finance is trying to calm down
Depositors' funds are protected by the state - this is how Finance Minister Oleksandr Danilyuk reacted to the hype surrounding the nationalization of Privatbank.
In the comments on this post on Facebook, users asked the minister what the hryvnia exchange rate would be when the state prints 150 billion to increase the capitalization of the bank.
No one touches clients' money?
"Nothing will happen to your money on current, deposit, card accounts, individuals and legal entities. This was a key condition for negotiations on a change of ownership," Oleg Gorokhovsky, first deputy chairman of the bank, wrote on Facebook.
True, according to Gorokhovsky himself, in his previous posts he rejected the possibility of nationalization until the very last moment.
"Did I know about it ( nationalization - ed.) when he wrote his previous posts in which he refuted this? Of course not," the banker said.
Note that earlier the "entry" of the state to Privatbank in social networks the press secretary of the institution, Oleg Serga, also denied it. Dmitry Dubilet, Director of Information Technologies of Privatbank, called the nationalization "nonsense" as well.
The new head of the bank - Alexander Shlapak
Later, after the official statement of the Cabinet of Ministers, Dubilet gave clarifications on nationalization. According to him, the bank's clients have nothing to fear, deposits are guaranteed by the state, and there is no question of suspending payments.
Dubilet connected negative rumors about the upcoming nationalization with "enemy media" and said that since the beginning of the ATO, the bank had survived seven information attacks.
Also, according to him, the state puts the former Minister of Finance Alexander Shlapak in charge of the bank.
"Public communication between the government, the National Bank and the Presidential Administration on the preparations for the nationalization of Privatbank should be included in crisis management textbooks in the chapter 'How the hell not to do it!'" wrote BPP MP and journalist Mustafa Nayem.
According to him, a clear plan of action to save the bank should have been made public immediately so as not to give rise to panic.
Another journalist is even less optimistic - the host of the Nashi Groshi program Alexander Dubinsky. Note that this expert works on the 1+1 TV channel, which belongs to former owner Privatbank to Igor Kolomoisky.
“It will become another shitty bank, like Oschad. Well, I don’t believe in the ability of the “reformers” to manage anything successfully,” Dubinsky wrote on his Facebook page.
But some opposition figures believe that the bank is being "merged" under foreign owners, liquidating the country's sovereign banking system.
This opinion was expressed by ex-regional Elena Bondarenko. "Quiet and reliable "draining" the economy of the entire country under someone else's and final control," she wrote on Facebook.