The Privat Group, the former owner of which is businessman Ihor Kolomoisky, in a report on profit and losses and other revenue for 2016 admitted spending on reserves for depreciation of credits and advance payments to clients UAH 144.713 billion, according to a draft audit report of Ernst&Young (E&Y), posted by the creative producer of the journalist investigations department of 1+1 TV channel and Groshi television program Oleksandr Dubynsky on his Facebook page.
According to the draft audit report, in 2016 PrivatBank admitted UAH 1.363 billion of expenses on settling financial liabilities, including interest, loss from hryvnia devaluation for the previous reporting periods.
“Thus, interest payment and loss from foreign currency revaluation for 2016 and undistributed profit as of December 31, 2015 were to be less by UAH 840 million, UAH 523 million and UAH 1.363 billion respectively,” reads the document.
According to the draft report, in October and November 2016 PrivatBank restructured credits and advance payments to clients for the amount of UAH 136.982 billion before the reserve revaluation was conducted as of December 31, 2016.
In 2016, the Privat Group admitted the loss from losing a subsidiary in the amount of UAH 229 million in the consolidate report on profit and losses and other revenue.
In 2016, the group also admitted sending UAH 371 million to reserves for depreciation of credits and advance payments to clients for the previous periods.
As of December 31, 2016 the group admitted UAH 21.356 billion, UAH 1.095 billion and UAH 266 million of property used as collateral that was transferred to ownership of the group for failures to pay. (Interfax-Ukraine/Business World Magazine)