The National Bank of Ukraine (NBU) has given six months to PrivatBank to settle relations with Football Club Dynamo (FC, both based in Kyiv) in line with regulatory requirements.
According to the response of the central bank to PrivatBank, lending to persons connected with the previous owners of PrivatBank (including FC Dynamo) violates the restrictions imposed on the bank. At the same time, these persons show their unwillingness to meet their commitments to restructure the loan portfolio.
According to the NBU, PrivatBank had enough time – six months from the moment of nationalization – to settle relations with the above-mentioned persons. The NBU is concerned that the bank did not take timely actions to meet the regulator’s requirements.
In a letter to PrivatBank, the National Bank also expressed outrage that the correspondence between the bank and the regulator, which, in particular, contained information with limited access, became available to the bank’s clients, and this led to speculations about the servicing of FC Dynamo Kyiv by PrivatBank.
FC Dynamo earlier said that PrivatBank had stopped providing the club with tranches on the credit line, which was the main source of its financing, over the position of the NBU, particularly the position of Deputy NBU Governor Kateryna Rozhkova.
The club believes that the NBU carries out functions unusual for the central bank, since the real actions of the bank’s management and personally Rozhkova put Dynamo in a desperate financial situation, violate the constitutional rights of its members and impede the statutory activities of FC Dynamo Kyiv. (Interfax-Ukraine/Business World Magazine)