PrivatBank (Dnipro) denies claims of creditors, liabilities of which were exchanged to additionally issued shares during the nationalization of the bank.
“It is no secret that temporary administration (the Individuals Deposit Guarantee Fund) jointly with the National Bank of Ukraine (NBU) conducted the bail-in transaction when some passives affiliated with former shareholders as the NBU thought were transferred to capital and set to nil. The bank’s eurobonds were included in this pool, which, of course, caused indignation of investors, as they did not understand this logic. We arranged with the NBU that we, the new managers, take this bank without these eurobonds. It is not the issue of the bank to comment on this problem,” PrivatBank Board Chairman Oleksandr Shlapak said.
He said that the NBU and Deposit Guarantee Fund would give all explanations on all transactions linked to bail-in.
Shlapak confirmed that UK SPV Credit Finance Plc remained in ownership of the bank after its nationalization.
“As for SPV: yes, we have it on the balance sheet. It was founded solely by PrivatBank and it remains in this status,” he said.
Shlapak commented on the decision of the bank to unblock accounts of U.S. Cargill, despite the fact that they were also included in the bail-in transaction.
“Eurobonds and Cargill are different cases. A mistake was done with Cargill in times of temporary administration. We corrected it as soon as possible,” he said, adding that the decision on Cargill did not entail the additional capitalization of the bank. (Interfax/Business World Magazine)
