Page 51 - UKRRptJun19

(Egypt) and member of the supervisory board of Citi Bank (Ukraine) Nadir Shaikh and Eran Klein, who previously held leadership positions at Commerzbank (United Kingdom), Citibank (United Kingdom), WestLB (Japan) and Deutsche Bank (Japan).
Also, the author of the Turkish banking system reform program, Engin Akcakoca, managing partner of Apollo Management investment company Andrea Moneta and the financier, the author of the financial sector reform in Ireland Steven Seelig were re-elected to the supervisory board of PrivatBank.
Viktoria Strakhova, who is responsible for the banking sector in the Ukrainian President-elect Volodymyr Zelenskiy team, has suggested a $2bn compensation payment to oligarch Ihor Kolomoisky as a part of a possible amicable solution in the dispute over the nationalised PrivatBank. Strakhova is a former corporate secretary with the country's largest lender PrivatBank, nationalised in late 2016. In her recent statements, Strakhova said that the lender was nationalised by the Ukrainian authorities due to a conflict between Kolomoisky and President Petro Poroshenko, not because of PrivatBank's poor financial conditions. On April 8, Kolomoisky said that he is going to seek $2bn of compensation from the nation's government. "I don't need [to get back] PrivatBank. But there was $2bn in capital there. Let them [the Ukrainian government] return it to me and there will be no problems," Kolomoisky said in an interview with the Ekonomichna Pravda online outlet. Strakhova believes that the amount of the desired compensation of $2bn could be formed as the amount of two indicators: the bank's capital at the time of nationalisation and the bank's liabilities to related parties forcibly converted under a bail-in procedure in the amount of UAH29.4bn ($1.1bn), At the same time, Kolomoisky recognised loans to related companies in the amount of about UAH60bn, she added. As a result of a possible cross charge deal, Kolomoisky's companies might owe PrivatBank about UAH10bn. Strakhova added in an interview with the Bihus.info online outlet. On April 9, Kyiv’s Economic Court accepted Kolomoisky’s amendments to a lawsuit against Ukraine’s government in, which the oligarch is demanding the full return of his 41.5% share of the bank. A similar claim was made by Triantal Investments Ltd, allegedly owned by Kolomoisky, which owned 16.5% of the shares of PrivatBank before it was nationalised. Later, the court announced a break until May 7 in the case. On April 18, the Kyiv Administrative Court ruled to cancel the NBU's resolution determining a list of related parties of PrivatBank. That resolution listed the legal entities that fell under the bank's bail-in procedure -, which involved writing down of $1.1bn of the bank’s liabilities (including $550mn in Eurobonds). The bail in followed recognition of PrivatBank insolvent and preceded its nationalization in December 2016. The court ruling was based on a claim filed by its former key shareholder, Kolomoisky, and his related entity, Triantal Investments Ltd. The decision grants former PrivatBank shareholders the ability to reclaim their funds that were bailed in during the nationalisation, the NBU stated, stressing that it was a first-tier court ruling and therefore doesn't take immediate effect. The NBU has promised to appeal the ruling. On April 18, the same court ruled upon hearing an appeal by Kolomoisky that the procedure whereby the state participates in resolving the insolvent PrivatBank was out of compliance with applicable laws.
The National Bank of Ukraine (NBU) said could nationalise PrivatBank a second time if a court ruled to annul a 2016 decision to take Ukraine's largest lender into state ownership, a top central bank official told Reuters on May 16. First Deputy Central Bank Governor Kateryna Rozhkova's determination to keep PrivatBank in state hands for now may reassure foreign creditors and
51 UKRAINE Country Report June 2019 www.intellinews.com