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investors, who worry that legal wrangling over PrivatBank threatens Ukraine's financial stability. The authorities have been locked in a protracted battle with the former main owner of PrivatBank, Ihor Kolomoisky, one of Ukraine's richest men, who says his bank was nationalised without justification. He has challenged the decision in court. Rozhkova said overturning the nationalisation would derail Ukraine's $3.9bn programme with the International Monetary Fund and rock investor confidence. Ratings agency Moody's said last month that overturning the decision would hit Ukraine's credit rating.
IMF ready to support Ukraine, reportedly has Privatbank concerns. Ukrainian President Petro Poroshenko had a telephone call with IMF Managing Director Christine Lagarde on May 3, both sides reported the same day. “We agreed that it is crucial to safeguard the important progress made during the president’s tenure in advancing key reforms, and especially to ensure the independence of the central bank and maintain the stability of the banking system,” Lagarde commented after the call. “The Fund stands ready to continue to support Ukraine in these efforts,” she said. Meanwhile, the president's press service reported that Lagarde "called for continuing the process of reforms based on the achievements of the last five years." During the call, “concerns were expressed about the situation of legal proceedings in Ukraine aiming to denationalize Privatbank, which could threaten the state's financial stability.” Recall, in late April, a Ukrainian court ruled to recognize as unlawful the nationalization of Privatbank (PRBANK), completed in late 2016.
8.1.4 Bank news
Privatbank has filed a lawsuit against its former owner Ihor Kolomoisky and his associates in a Delaware court in the US. The 104-page filing accuses Kolomoisky of misappropriating hundreds of millions of dollars and laundering the money through 20 US corporations to buy steel plants and commercial real estate in 12 US states, including Ohio, Texas, Florida and Kentucky.
The former co-owner of Ukraine's largest lender PrivatBank, controversial oligarch Ihor Kolomoisky, has filed five new lawsuits against the National Bank of Ukraine (NBU) and nationalised PrivatBank to the business court of Kyiv.
The lawsuits dispute five loan agreements and Kolomoisky's personal guarantee under them. The first hearings will be held on May 10, 22 and 23, according to the Novoye Vremia magazine.
According to Kolomoisky's lawyers, such actions by the ex-owner of PrivatBank with a desire to back up the decision of a district court in Kyiv, made on April 20, which satisfied the businessman's claim to terminate the personal guarantee agreement on refinancing loans issued to PrivatBank by the NBU in the amount of UAH9.2bn ($350mn).
Kolomoisky s widely considered being a mentor of Ukraine's President-elect Volodymyr Zelenskiy. The inauguration of the newly elected president should take place no later than June 3.
Ukrainian President Petro Poroshenko has warned that possible "backsliding" on the issue of the nation's largest lender PrivatBank, nationalised in late 2016, after the presidential election will cause a deep economic crisis both in the
52 UKRAINE Country Report June 2019 www.intellinews.com