Current analysis

PrivatBank`s Nationaliszation Is Not Bankruptcy

SONY DSC

Now we do not have the final decision on nationalization of the PrivatBank, executive director of the Center for Social and Economic Research ‘CASE Ukraine’ Dmitry Boyarchuk said to ‘Fraza’.

‘The question of Privatbank`s nationalization has really been discussed for a long time. There are some problems related to decapitalisation there, and that question, which is on the agenda, is really worth of that. We should understand that the process of the nationalization is quite expensive, and is not yet clear whether someone will decide to do that someday. The problem does exist, but how it will be solved is not yet clear. At least, the final decision on this point is not ready’, said the expert.

‘If we talk about what will happen after the nationalization, it should understand that nationalization is not bankruptcy. This is merely a transfer of ownership from the private owners to the state ones. Such processes have been taken place earlier, and the banks survived after this procedure. Moreover, the whole system survives, and the liabilities remain. In fact, it is only the government will indeed feel the effects of nationalization’, said the expert.

December 1, 2016