In response to information circulated by some media outlets regarding a refinancing loan provided to CB PrivatBank PJSC by the NBU on 19 December 2016, the National Bank of Ukraine hereby provides the following information.
The decision to disburse this loan was taken in accordance with the documents given below and is not covered by the Regulation On the Use by the National Bank of Ukraine of Standard Banking System Liquidity Regulation Instruments.
Please be informed that the decision to grant this loan was taken by the regulator pursuant to:
- Articles 7, 71 and 42 of the Law of Ukraine On the National Bank of Ukraine;
- Resolution of the National Security and Defense Council of Ukraine of 18 December 2016 On Urgent Measures to Be Taken to Safeguard the National Economic Security of Ukraine and Ensure the Protection of Depositors' Interests (enacted by Decree of the President of Ukraine No. 560/2016 of 18 December 2016);
- Minutes of the Meeting of the Financial Stability Council No. 6 of 18 December 2016;
- Articles 39 and 411 of the Law of Ukraine On Households Deposit Guarantee System; and
- Resolution of the Cabinet of Ministers of Ukraine No. 961 of 18 December 2016.
In his comments to media, Director of the NBU Legal Department Mr Oleh Zamorskyi emphasized:
“The decision on the takeover of CB PrivatBank PJSC by the State and other decisions in this regard were prepared, coordinated and taken at the state level by the public authorities involved in strict accordance with Article 41.1 paragraph 4 of of the Law of Ukraine On Households Deposit Guarantee System.
Prior to the takeover of CB PrivatBank PJSC, due diligence was carried out and the necessary legislative and regulatory framework required to take and justify this decision was prepared considering the risks to financial stability and national security.
In addition, the NBU draws attention to the fact that the aforementioned loan was repaid in full.