Life after nationalization. What will happen to PrivatBank and its clients
Rumors confirmed
The Cabinet of Ministers and the Council of National Security and Defense of Ukraine supported the nationalization of PrivatBank. A message about this on Sunday, December 18, in the evening appeared on the agency's website. "It becomes one hundred percent property of the state," the Cabinet of Ministers said, assuring that this guarantees the smooth operation of the bank and the safety of funds in the accounts. Previously, experts predicted this, but not earlier than December 23.
The transition period at the bank 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 still has not commented on the situation. Only the deputy chairman of the bank, Oleg Gorokhovsky, spoke about the nationalization.
"Did I know about this when I wrote my previous posts in which I refuted it? 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, individuals and legal entities, nothing will happen with investments in the Service of Profitable Investments. The bank will continue to work in a standard mode, "he wrote on his Facebook page.
Later it became known that ex-finance minister Alexander 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 PrivatBank's transition to state ownership, 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 and begins to implement a strategic development plan, the state plans sell this bank ", - said the head of the Ministry of Finance Alexander Danilyuk.
The authorities calm down
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 takes responsibility and guarantees the clients the inviolability and integrity of their money. Poroshenko said that a new highly professional group of specialists has already been hired to manage the bank, to the formation of which the European Bank for Reconstruction and Development has joined.
"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," the president said. According to Prime Minister Vladimir Groisman, the decision to nationalize 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 at PrivatBank.
Reaction of the Ministry of Finance and the National Bank
On Monday morning, Finance Minister 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 - 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 allow, firstly, to stabilize the bank, to save the funds of almost 20 million of PrivatBank depositors, as well as to ensure the stability of the country's financial system. Thanks to the transfer to state ownership, the bank continues to operate. This allows depositors to have continuous access to their money," assured the minister.
At the same time, the head of the NBU Valeria Gontareva said that the owners of Privat themselves asked for nationalization.
According to Gontareva, “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 were unable to fulfill the capitalization program and sent a letter to the Cabinet of Ministers with a request for the state to enter the capital of Privatbank PJSC.
Gontareva stressed that the capital deficit of PrivatBank increased to UAH 148 billion.
"As of December 1 of this year, the capital deficit of PrivatBank increased to UAH 148 billion, and the bank's liquidity significantly decreased. The bank did not fulfill the required reserve requirements for almost a year, and the bank's overdue debt to the regulator on stabilization loans amounted to UAH 14 billion, the total debt UAH 19 billion. Realizing all the problems of PrivatBank and the risks they pose 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 devaluation? Every Ukrainian is now asking this question. But we want to assure you, 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 of legal entities. We are talking only about corporate payments. The suspension is due to the procedure for changing control and the specifics of the legislation, Victoria Strakhova, project manager of the financial sector reforms of the National Council of Reforms, 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 said and specified that payments received on December 19 will be executed on December 20.
ATMs and terminals work
The clients of Privatbank will not have any problems with access to their funds - salaries, pensions, scholarships that pass through this bank will arrive regularly, assured Danilyuk and Gontareva.
"Clients will have free access to their current accounts and deposits. ATMs and terminals of PrivatBank, as well as other banks, continue to work," Danilyuk said.
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 would happen to this service after nationalization.
The ownership of all software will be transferred to the state, including the Privat24 system, Gontareva assured.
However, she could not 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 cannot tell you about the Privat 24 program, but if you look at Oschad 24 or Raifazen 24, the programs are not particularly different," Gontareva said.
It should be noted that at the moment the service is operating normally. So far, transactions in Privat24 are proceeding normally, only transactions of legal entities are not carried out.
Nationalization of Privatbank - all the details (being updated)
Ukraine nationalized Privatbank. What are the consequences for the bank's clients? What should depositors do?
The Cabinet of Ministers and the Council of National Security and Defense of Ukraine have supported the nationalization of Privatbank, the largest commercial bank in Ukraine.
The owner of Privatbank, Igor Kolomoisky, was not in the presidential administration (AP) of Ukraine during the government meeting.
The head of the board of the Ukrainian "Interbank Currency Exchange" Anatoly Guley 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 took place, which took place in the Presidential Administration, after which a meeting of the National Security and Defense Council took place.
Information that the largest commercial bank in Ukraine - Privatbank - may be nationalized has been circulating in the banking market for a long time. Privatbank said that the talk of nationalization is just an attack on the bank.
The Cabinet of Ministers decided to transfer PJSC "Privatbank" to one hundred percent state ownership.
According to the government's press service, 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 National Security and Defense Council 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 said.
It is envisaged that the state, represented by the Ministry of Finance, will become the owner of 100% of PJSC Privatbank shares and guarantee the smooth functioning of this institution and the preservation of funds of its clients.
The government of Ukraine stressed that these actions are taking place in clear coordination with international financial organizations and with their support.
NBU Chairman Valeria Gontareva, who participated in the government meeting, and Finance Minister Alexander Danilyuk informed the members of the Cabinet of Ministers that the private shareholders of Privatbank turned to the government with a proposal that the state, in the interests of the bank's clients, become its full owner.
"The transition 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 said.
The government proceeds from the fact that the responsible decision he made saved both Privatbank and the entire banking system, the statement said.
On Monday at 8-30 am Finance Minister Alexander Danilyuk and the head of the National Bank Valeria Gontareva will talk about the details of the decisions made at a joint press conference. In the morning, President Petro Poroshenko and Prime Minister Volodymyr Groisman will make separate statements on this matter.
After the nationalization of PrivatBank, ex-Minister of Finance of Ukraine Oleksandr Shlapak will be appointed chairman of the board.
First Deputy Chairman of the Board of PrivatBank Oleg Gorokhovsky 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.
However, he noted that nothing will happen to clients' money.
"Nothing will happen with your money in current, deposit, card accounts, individuals and legal entities, with investments in the Service of Profitable Investments. This was the key condition for negotiations on the change of ownership," Gorokhovsky wrote.
Gorokhovsky also said that PrivatBank's ATM network has been issuing more than 2 billion hryvnia a day in recent days.
"While the previous records barely reached 1.5 billion in the peak days," he said.
Already worked in Privatbank from 1993 to 1998, when Sergey Tigipko was the head of the bank. He served as director of the Lviv branch, director of the Western Main Directorate and deputy head of the bank's council.
In 1998, Shlapak, together with Tigipko, went to the government as his advisor, 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, which was then Tigipko. From 2005 to 2006, Shlapak worked as the 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? Dmitry Dubilet, CIO of Privatbank, spoke about questions of this kind on his Facebook page.
After the nationalization of Privatbank, all funds in the current and deposit accounts of all individuals and legal entities will be intact and safe, and the bank will operate in a standard mode.
"Dear friends, today PrivatBank is becoming a state 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 intact and safe. 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 to panicked customers in ATMs and branches, "- wrote the banker.
The latest attack, Dubilet said, which played a key role, was a news release on Inter that said PrivatBank would suspend all payments on Monday.
"Actually, the decision to voluntarily and peacefully transfer the bank into the ownership of the state was made exactly at the moment when we realized that we could not survive this information attack, and that our clients could be at risk," Dubilet said. He also noted that the bank will continue to operate in a standard mode.
“I’m scared 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 in the branches. The bank has a unique corporate culture. All this is nowhere. will go away with our departure ", - wrote Dubilet.
Money of Privatbank depositors are safe - Minister of Finance of Ukraine Oleksandr Danilyuk. He wrote about this on his Facebook page.
"The government has decided to transfer PrivatBank into state ownership. Investors' money is safe and protected by the state," he said.
Danilyuk noted that the bank is working as usual. He promised to announce the details at a joint briefing with NBU Chairman Valeria Gontareva on December 19 at 8:30.
Privatbank will suspend corporate payments for a day, which is a technical necessity due to the change of control procedure and legislation.
Victoria Strakhova, project manager of financial sector reforms at the National Council of Reforms, announced this on her Facebook page.
"Customers of PrivatBank are really accustomed 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 indicators. This is a technical necessity due to the procedure for changing control and the specifics of legislation, "she said.
Strakhova also recalled that according to the law, interbank transfers are carried out within up to three business days, and intrabank transfers - up to two business days.
Privatbank clients will have no problems with access to funds - the authorities.
Customers of Privatbank will not have problems with access to their funds, salaries, pensions, scholarships that pass through this bank will be received regularly.
Finance Minister Alexander Danilyuk and the head of the National Bank Valeria Gontareva assured this at a joint press conference on Monday morning.
"Yesterday the government made a decision on the state's entry 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 work."
"This allows depositors to have uninterrupted access to their money. For procedural reasons, the service of clients - legal entities will be temporarily suspended for 1 day. But steps are already being taken to ensure that this has little minimal impact on their business. There are no other restrictions for clients at the moment and is not happening, "- 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 continue to be carried out," the minister said.
According to him, the government is allocating money in the necessary amount to stabilize the bank, "for this, funds are provided 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.
"Thus, we protect more than 20 million Ukrainian citizens who are served and save funds 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 thousand individual entrepreneurs, as well as 600 thousand enterprises, from small to large, will not lose their funds and in the future will be able to work without interruption, and 3.6 million workers will retain access to their salaries, in particular 2.2 million employees of budgetary institutions and 1 , 4 million employees of commercial organizations ", - said Gontareva.
She also assured that access to deposits and terminals will remain.
NBU does not yet know how Privat 24 will work.
National Bank Chairman Valeria Gontareva could not 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 cannot tell you about the Privat 24 program, but if you look at Oschad 24 or Raifazen 24, the programs are not particularly different," Gontareva said.
At the same time, she again stressed that Privat Bank is 100% owned by the state, and the funds of the population are protected.
Also, the Ministry of Finance and the National Bank promise to hold daily briefings and explain the current situation.
After the stabilization of Privatbank, Ukraine will sell it.
Finance Minister Alexander Danilyuk announces the intention of the state authorities to sell the nationalized Privatbank.
"After the transition of this bank into state ownership, the fate of state banks in the banking sector is quite significant. The state does not plan to own such a large share in the banking sector," he said at a press conference.
"Therefore, after the bank is fully stabilized, 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," \u200b\u200bthe Minister of Finance said.
The minister also said that "the elimination of Privatbank's deficit will take place in several stages," first, the Ministry of Finance will issue bonds in the amount of 43 billion hryvnia.
"It is important that the owners themselves turn to the government with a request to enter the bank's capital, 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 bank is transferred to state ownership, which compensates the costs to the state. incurred during the transition of the bank into state ownership, "he said.
In turn, the head of the National Bank Valeria Gontareva noted that "the temporary administration is already working in this bank."
"But it doesn't matter at all, because we are not suspending the bank's operations," she stressed.
"The Ministry of Finance in 2 days must decide on the management, 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 clients of Privatbank the safety and integrity of their deposits.
The state assumes responsibility and guarantees the clients of Privatbank the inviolability and integrity of their money.
This was stated 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 correct salvage decision - to save your money and increase it in a successful bank," the head of state said.
Poroshenko explained that the decision to nationalize is based on saving the bank and securing ownership of its resources for everyone who has placed them in this institution.
"The measures that have been taken by private owners and top managers over the past two years have not been enough," the president stressed.
According to him, the authorities have eliminated "a direct threat to both the bank itself and the entire banking system of Ukraine."
"The problems of Privatbank have been accumulating over the years. In the conditions of the war and the economic crisis, they have become even more aggravated. The shareholders did not find the resources to fulfill the mandatory capitalization program. And the current business model has obviously exhausted itself," Poroshenko said.
He emphasized that the only way to preserve the bank and thus ensure the safety of its clients' funds is to transfer it into state ownership.
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, to which the European Bank for Reconstruction and Development has joined. This team, the National Bank, and the Ministry of Finance have been tasked to ensure a smooth transition, stable work and customer service as usual," the president stressed.
First of all, the new management should take care of uninterrupted service of socially sensitive clients. 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, he submitted a bill to the Verkhovna Rada as an urgent one, which provides additional guarantees for citizens' deposits in this institution.
"I am addressing you, dear clients of Privatbank, - keep calm. The new administration is already taking all the levers of control into its own hands. Right now, at these hours and minutes," the President of Ukraine said.
Poroshenko introduced a law on additional guarantees for Privatbank depositors.
President Petro Poroshenko introduced a bill to the Verkhovna Rada, which should give additional guarantees to Privatbank depositors.
The draft law on amendments to the law "On banks and banking activities" regarding the state guaranteeing deposits of individuals was registered on December 19 under number 5553.
The text of the document is not yet on the parliament's website. He was transferred to a specialized committee.
After the nationalization of PrivatBank, the dollar rate in Ukraine jumped sharply upward.
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 / $," Yuriy Grinenko, head of the dealing operations department of Raiffeisen Bank Aval, told UBR.ua.
Financiers attribute this to the panic mood of PrivatBank depositors, who, despite the assurances of the government (the new owner of the bank) and the National Bank, are storming the ATMs and cash desks of the financial institution.
As a reminder, on December 16, foreign exchange trading ended with a decrease in the dollar purchase rate by 2 kopecks, while the selling rate remained at the level of Thursday. The Interbank closed at UAH 26.28-26.33 / $.
Expert: Nationalization of PrivatBank is a reason to carry out additional emission of hryvnia.
The nationalization of PrivatBank actually indicates that the government does not have an agreement with the IMF to receive the next tranche.
Financial expert Alexander Dubinsky announced this on his Facebook page.
"In fact, this is a way to print a x * yu mountain of hryvnia without control from the IMF and the need to replenish foreign exchange reserves (now the issue is going under the currency entry). 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 divestiture of the bank's assets and the injection of the necessary amounts into the economy through the monetization of Privatbank's government bonds." - 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 overlap with Ukrainian "peculiarities."
"In civilized countries, if a bank is nationalized, depositors have no reason to be afraid, as they move from a problem bank to a more reliable or state one. But in the 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 thousand. All that is higher, depositors lose, "explained the chairman of the Committee of Economists of Ukraine Andriy Novak.
The safety of clients' funds was confirmed by the first deputy chairman of the bank's board Oleg Gorokhovsky. "The decision to voluntarily and peacefully transfer the bank into the ownership of the state was made at the moment when we realized that we could not survive this information attack, and our clients could be at risk," Gorokhovsky said.
According to him, "nothing will happen" with 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 - there will be a stop of payments for a couple of days ... If there are more than a couple of days, it will be very strange," economist Andrei Blinov explained.
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 the mobile version of 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 been, and will be. People can easily use it," Okhrimenko is sure.
"Privat24 is connected with the bank's payment system. Perhaps there will be no blocking, just the actual transfer of funds will take place on the next business day," Blinov added.
What will happen to Privat's deposits?
The same as with cards and salary - 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 there will be Sidorov - well, what difference does it make to an ordinary person?" Okhrimenko. - Another thing is that because of the new management, the quality of work may decrease, the enthusiasm of workers will abruptly subside. Because a private trader stimulates workers, and you come to a state bank 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 is the point of taking a deposit from there, while losing interest?" - added Blinov.
What should PrivatBank clients do?
Do not panic. All experts interviewed by "Vesti" assure that neither the government nor the National Bank will put down such a giant as Privat. Maximum - 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 postponing the matter on the back burner, and remove a little cache with the expectation that it will last for several days. But in our country people do not keep all the money on the card, trusting And by no means be fooled by 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 speeds up the creation / modification of products and services by an order of magnitude, in simple terms, allows you to "forget" about IT and focus on the core business.
There are more and more state banks in our country. IT in them, to put it mildly, is rather archaic and fragmented. I would transfer everyone to a single platform (bankers will only say thank you), and in a year I would modernize the entire public sector to a super-global level (I understand that this is a Christmas story).
How do you plan to develop Corezoid in the future?
Each "Jobs" should have their own Next and Pixar. We will ensure continuity, transfer of affairs, and forward, to conquer the world.
We are talking about the departure of the Corezoid team from the IT department 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 in the bank who know how to work in Corezoid. Even call center operators can put together a simple bot. If you are trying to see the outcome and paint a picture “everything is lost”, then this is not about us - we always leave order behind ourselves.
So, to sum up, is Corezoid an independent American company that will continue to work and promote its product on the global market?
Corezoid - independent American hosting a company that continues to operate and promotes your product in the global market.
On what conditions will the work of the state-owned PrivatBank and private Middleware be based - the subject of negotiations between the new management of the bank and the company?
There is now an old contract with very wholesale prices for PrivatBank. There is no economic need to renegotiate 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 business to the new team?
Yes, if he will give it to someone. While guests confuse marketing with technology, there is nothing to pass on and no one to share.
The rest of the IT department employees will 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: raise your hand and you are already at a 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 will further develop it as a product company, including on the Ukrainian market?
PrivatBank announced that it invested in Corezoid. Can you tell me what this means? Who invested, what funds, for what share?
PrivatBank is a collective image of the holding. Foreign companies are investing.
Afterword
Privat24 has belonged to the state since yesterday. But it was not for nothing that the head of the NBU could not clearly answer the question about the ownership of the service.
IT-infrastructure "Privat" uses its code with the integration of many different services, including the services of Amazon, Google and other companies. This is partly tied together thanks to the Corezoid OS, which, like the products of foreign corporations, is not owned by the state. Although the algorithms in the Privat 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 payments and contracts for all third-party services on which the bank's IT system is built.
Dmitry Gadomsky, partner of the legal company Axon Partners, lawyer Ekaterina Mamyko, website editor Olga Karpenko took part in the preparation of the material.
Found a mistake? Highlight it and press Ctrl + Enterto let us know.
Late Sunday evening it became known that.
The Minister of Finance of Ukraine Oleksandr Danilyuk on his Facebook page said that nothing threatens the bank's clients:
“The government has decided to nationalize PrivatBank. Investors' money is safe and protected by the state. The bank works as usual, ”he wrote.
PrivatBank are going to sell
“Thanks to the transfer of PrivatBank to state ownership, the bank continues to work. This makes it possible to continuously have access to your funds. For procedural reasons, for one day, December 19, the service of clients of legal entities will be suspended. But measures are already being taken to ensure that this has a minimal impact on their business. There are no other restrictions for clients at the moment. Clients will have free access to their current accounts and deposits, ATMs and terminals of PrivatBank and other banks continue to work, ”said the Minister of Finance of Ukraine Alexander Danilyuk.
“Therefore, after the bank is fully stabilized 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 \u200b\u200bon transparent terms, ”said the Minister of Finance.
What opportunities does PrivatBank transfer to the state?
- stabilization of the bank (money has already been allocated for this from the budget of Ukraine);
- preservation of funds of about twenty (million, - author's note) PrivatBank depositors;
- ensuring the stability of the country's financial system.
PrivatBank turned out to be insolvent
“Yesterday, the NBU classified PrivatBank as insolvent and asked the government to transfer this bank to the state's ownership. We are convinced that the transition of the bank to 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. They will not lose their money and will be able to continue to work smoothly 500 thousand entrepreneurs. And also 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?
Valeria Gontareva, Chairman of the National Bank, 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. "It becomes 100% state property," the statement on the website of the Cabinet of Ministers says.
According to the ministry, the new shareholder - Ukraine - guarantees the smooth operation of the bank and the safety of funds in the accounts.
Nationalization is taking place "with the support of international organizations", but these structures are not listed in the message.
The transition period began today, December 19th. Early in the morning, special appeals to Ukrainians were made by President Petro Poroshenko, Prime Minister Volodymyr Groisman, Finance Minister Oleksandr Danilyuk, and NBU head Valeriya Gontareva.
Correspondent.net chronicles the most important events in the nationalization of Privatbank - the largest financial institution in the country.
PrivatBank officially became state-owned - nationalization completed
The Fund for Guaranteeing Deposits of Individuals and the Ministry of Finance of Ukraine signed an agreement on the sale of 100% of PrivatBank shares on December 21. From now on, the state represented by the Ministry of Finance is the owner of 100% of the bank's shares.
However, this will not always be the case - the head of the NBU Valeria Gontareva has already named the date for the sale of Privat by the state - this may happen no later than in 3 years.
All payments in the bank have been resumed since December 20. Ukrainians are coming out of shock and have already suffered deposits in Privat. So, for the day on December 20, almost two thousand new deposits were issued in the bank.
Nevertheless, record amounts continue to be withdrawn from cards. On December 21, 1 billion UAH was withdrawn from Privat cards - and this is a monthly norm!
IMF approves
The International Monetary Fund welcomes the decision to nationalize Privatbank, the fund said in a statement.
"Today's decision of the Ukrainian authorities to nationalize Privatbank is an important step in their efforts to preserve financial stability," the IMF Managing Director Christine Lagarde is quoted as saying.
She believes that ensuring that all Ukrainian banks comply with NBU regulatory requirements is essential to maintain public confidence in the banking system.
The IMF pledges to continue supporting 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
The people are running for cash
Every day, people withdraw 2 billion hryvnia from accounts in Privatbank, which was not even during the period of active hostilities, said Alexander Dubilet, who was the chairman of the board of Privatbank.
“We have charged all the ATMs, the ATMs continue to work. And this at a time when the NBU has not given a penny yet,” 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 again announced an information attack on the bank, but refused to answer the question of who is behind this attack. "Everyone will be judged by history," said the head of the board of directors of Privatbank.
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Slap will support
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 the 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
During a briefing in Dnipro, the head of the board of Privatbank Oleksandr Dubilet said that the estimate 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 over these two years.
"In fact, in dollar terms, the bank's portfolio has halved. A lot of loans were returned. If you look at what deposit outflows we had, it is about 70 billion hryvnia, even more. They were refinanced by the NBU by 38%," - Dubilet said.
According to him, in order to maintain the conditions of deposit outflows, the bank reduced its loan portfolio and, of course, repaid the best loans, not the worst loans.
Inventory
Privat has started recalculating customer account balances and funds. The head office, all its services and structural subdivisions are operating normally, however, technical breaks are possible in the bank branches due to the beginning of the inventory.
In this regard, there are already specific figures:
- all expenditure financial transactions on accounts received by the bank will be executed starting from 9:00 on December 20;
- card debit transactions (for corporate cards and Account Key) are also temporarily not serviced;
- all incoming transactions (receipts to cards and accounts) work in the standard mode.
Everyone will win except ordinary citizens
Nationalization of Privatbank is beneficial to everyone except for Ukrainian taxpayers, said the President of the Association for the Protection of Banks Ekaterina Nazimko. 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 have provided themselves with 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 who will be imposed on it by creditors," Nazimko said.
Creativity 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 found in the bank, its owners asked for help and the state supported them.
Europe is happy
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 to protect their economies in the financial crisis. "In the case of PrivatBank, a respectable western company will act as advisers to the government in managing the bank. The EBRD is certainly also ready to offer cooperation in finding an optimal solution for PrivatBank," said the head of the EBRD.
EU High Representative for Foreign and Security Policy Federica Mogherini noted that the EU supports the decision of the Cabinet. “I congratulate you 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. the Privat24 system became the property of the state.
Oleg Gorokhovsky, the first deputy chairman of the bank's board, wrote about this on Facebook.
Even more memes on the nationalization of Privatbank.
Groisman's appeal
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 appeal
President Petro Poroshenko recorded a special appeal to Ukrainians on 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 inviolability and integrity of their money to the clients of PrivatBank, the president assured.
"The old, private owners, which is fundamentally important for us, fixed a responsible position in letters to the government and the National Bank. It says in black and white that they recognize the need and expediency of an extraordinary step and fully support the transfer of Privatbank into state ownership," he said. Poroshenko.
A new professional group of specialists has already been hired to manage the bank, to the formation of which the EBRD has also joined.
"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 am addressing you, dear clients of PrivatBank, - keep calm,” the president said.
ATMs and terminals continue to work
Privat's clients will not have any problems with access to their funds - salaries, pensions, scholarships that go through the bank and will continue to function properly.
Finance Minister Alexander Danilyuk and the head of the National Bank Gontareva assured of 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 said.
Privat cards can be serviced at any ATMs in our country, Gontareva assured. Since Monday, the NBU is ready to support Privatbank with liquidity if necessary.
What will happen to Privat 24
The ownership of all software will be transferred to the state, including the Privat24 system, Gontareva said.
However, she could not 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 cannot tell you about the Privat 24 program, but if you look at Oschad 24 or Raifazen 24, the programs are not particularly different," Gontareva said.
The owners did not cope with additional capitalization
Danilyuk and Gontareva said that the owners of Privat themselves asked for nationalization.
The National Bank of Ukraine declared Privatbank insolvent on the evening of December 18, 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 turned to the government with a proposal to transfer this systemically important bank to state ownership,” said the head of the regulator.
Also, the shareholders, unable to fulfill the capitalization program, sent a letter to the Cabinet of Ministers with a request for the state to enter the capital of PJSC Privatbank.
"By this letter, the shareholders pledged to restructure the loans provided by the bank to legal entities, taking into account the requirements of the National Bank until July 1, 2017," she said.
Gontareva said that the owners of the bank agreed to cooperate with the state, "we have 100% cooperation."
How much money do you need for Privatbank
The head of the NBU and the Minister of Finance emphasize most of all: you should not worry, you should not panic, the state has everything under control. The authorities will not allow inflation and currency surges.
The Ministry of Finance and the National Bank estimate the capital requirement of Privatbank 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 a capitalization plan. However, there was no plan. At the same time, the National Bank established that the total capital requirement of Privatbank was 148 billion hryvnia," the statement says.
According to the Minister of Finance, 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," said Danilyuk.
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 \u200b\u200bafter nationalization
After stabilization, the state plans to sell Privatbank.
"After the bank is completely stabilized, the state plans to sell this bank. And this will create normal competitive conditions in the market. Sell on transparent terms," \u200b\u200bthe Minister of Finance said.
"There are no grounds for concern," Gontareva said in parting.
NBU promises one more briefing today.
Special briefing
A press conference on the situation with Privatbank was to begin at 8:30 in the Cabinet of Ministers.
There are a lot of people who want to get on it.
Video of the briefing itself. All news from him will quickly appear in this article.
While everything works:
And, of course, they joke a lot.
Correct decision - ex-minister
Former Minister of Economy Bohdan Danylyshyn believes that the nationalization of Privatbank is the right decision.
"In 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 system bank, important for the financial system of the state and the largest savings bank in the country. 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.
Danilishin 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 guarantees the uninterrupted operation 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.
And is Trump to blame?
The original opinion on the reasons for the Nationalization of the bank was expressed by the MP Sergey 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 of solving 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 the beautiful promises and tears of the kleptocrat about the" ideals of the Maidan. "
"And there will be no more Biden, who would call Poroshenko for weeks, persuading him to dismiss Shokin or introduce electronic declarations. Starting from January, everything will be very pragmatic. And the IMF program will continue only in return for the strict implementation of their requirements. Where the main point has been the nationalization of Privatbank for half a year ", - wrote the deputy.
Not a stranger
It should be noted that the new chairman of the board of Privatbank, Alexander Shlavak, is not a stranger to the bank.
Shlapak already worked at Privatbank from 1993 to 1998, when Sergey Tigipko was the head of the bank.
He served as director of the Lviv branch, director of the Western Main Directorate and deputy head of the bank's council.
In 1998, Shlapak, together with Tigipko, went to the government as his advisor, 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, which was then Tigipko.
From 2005 to 2006, Shlapak worked as the 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
Due to the technical necessity due to the procedure for changing control and the peculiarities of the legislation, Privatbank will suspend the execution of payments of legal entities for a day.
"There will be a stop for 1 day of corporate payments," said Victoria Strakhova, project manager of financial sector reforms of the project office of the National Council of Reforms.
The Ministry of Finance is trying to calm
Depositors' funds are protected by the state - this is how Finance Minister Alexander Danilyuk reacted to the excitement around the nationalization of Privatbank.
In comments to this post on Facebook, users asked the minister what the hryvnia exchange rate will be when the state prints 150 billion to capitalize the bank.
Nobody will touch the 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 the change of ownership," Oleg Gorokhovsky, the 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 last moment.
"Did I know about this ( nationalization - ed.)when he wrote his previous posts in which he refuted it? Of course not, "the banker said.
Note that earlier the state's "entry" into Privatbank in social networks was also denied by the institution's press secretary Oleg Serga. Dmitry Dubilet, IT Director of Privatbank, also called nationalization "nonsense".
The new head of the bank - Alexander Shlapak
Later, after the official statement of the Cabinet of Ministers, Dubilet gave explanations on nationalization. According to him, the bank's clients have nothing to fear, deposits are guaranteed by the state, and there is no talk of stopping payments.
Dubilet linked the negative rumors about the forthcoming 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 to manage the bank.
"The public communication of the government, the National Bank and the AP on the preparation of the nationalization of Privatbank should be included in the textbooks on crisis management in the chapter" How the hell you shouldn't do it! ", Wrote the People's Deputy from BPP and journalist Mustafa Nayem.
According to him, a clear plan of action to rescue the bank should have been made public immediately so as not to give cause for panic.
Even less optimistic is another journalist - the host of the Nash Groshi program Alexander Dubinsky. Note that this expert works on the 1 + 1 TV channel, which belongs to the former owner of Privatbank, Igor Kolomoisky.
"It will become another shitty bank, like Oschada. 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" drain "of the economy of the entire country under someone else's and final control," - she wrote on Facebook.