Sheremet: the Nationalization of “Private” is the right step, but it will cost the Ukrainians

The nationalization of the country’s largest Bank was necessary for the cleansing of the banking system of Ukraine, but it will cost dearly Ukrainians and budget. This was stated by the TV channel NewsOne, an economist, former Minister of economy Pavel Sheremet.

According to him, the nationalization of PrivatBank is neither a victory nor a defeat, but it was forced.

“It’s not a victory and not a defeat, it’s the equivalent. Is that us accounting is called working progress, and Ukrainian accounting – “under construction”. This is a necessary step, but it had to be done. In my opinion, this is the correct step for purification of the banking system and made in such a way as not to undermine the credibility of the entire banking system. It is a step which is very costly to all citizens of Ukraine and the budget of the country”, – said Sheremet.

He also noted that if the Bank allowed to fail, it would cause even greater damage to the financial system of the country.

“In that situation, the impact was from the Bank, the alternative was, in fact, bankruptcy. But it would be even more severe blow, and it would be even more expensive than the “hole” that we see in Private”, – said the economist.

We will remind, on December 18, the government nationalized PJSC PrivatBank. On 21 December, the Deposit guarantee Fund of natural persons and the Ministry of Finance of Ukraine signed a contract for the sale of 100% stake in PrivatBank: Ministry of Finance acquired 100% of the shares for one hryvnia. Nationalization took place in 72 hours.

The decision explained the need, as the Bank was in a difficult position. International financial institutions supported this decision.

In turn, the ex-owner of the Bank Igor Kolomoisky believes that PrivatBank was the victim of arbitrariness. He also noted that the Prime Minister and his team showed real courage to take this difficult decision, as there was a threat to the entire financial system of Ukraine.