Bail-in foreseen for PrivatBank's eurobonds
Bail-in is foreseen for eurobonds of PrivatBank (Dnipro). The National Bank of Ukraine (NBU) is considering them as the funds affiliated with former owners of the bank, Ukrainian Finance Minister Oleksandr Danyliuk has said.
"According to the NBU's proposal, bail-in is foreseen for eurobonds. Then we will act. They are considered as affiliated bonds," Danyliuik said at a briefing on Monday.
NBU Governor Valeriya Gontareva said that according to the law on the Deposit Guarantee Fund, the NBU is obliged to send the proposal to nationalize the bank to the government, taking into account all so-called funds for which bail-in is foreseen – the funds affiliated with shareholders and the unburdened funds that are not deposit or current accounts.
"The gap is UAH 148 billion. We proposed to the Finance Ministry to additionally capitalize the bank for UAH 116 billion, as we proposed UAH 32 billion as the unburdened liabilities of PrivatBank for bail-in," Gontareva said, adding that bail-in implies conversion of the unburdened liabilities, first of all those affiliated with shareholders, to the bank's capital.
Danyliuk said that all liabilities will be determined after the bank's audit.
