IMF Statement on the Stability of the Banking System in Ukraine
IMF News, December 19, 2016
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- IMF Statement on the Stability of the Banking System in Ukraine
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Bibliographic details
- Published: December 19, 2016
Context and action
- Press Release No. 16/568
- Date: December 19, 2016
- Issued by: IMF Communications Department, MEDIA RELATIONS
- Press officer: Wiktor Krzyzanowski
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
Summary of the IMF position
- The IMF welcomes the Ukrainian authorities’ decision to nationalize PrivatBank as an important step to safeguard financial stability.
- The decision was taken to ensure the smooth operations of the bank given:
- its systemic role in Ukraine’s financial system, and
- insufficient efforts to strengthen its capital adequacy in recent months.
Key findings and priorities outlined by Ms. Christine Lagarde, Managing Director of the IMF
- Ensuring that all banks operating in Ukraine meet capital and regulatory requirements is essential to:
- maintain public confidence in the banking system, and
- reinforce the banks’ ability to support productive activities necessary for the prosperity of the Ukrainian people.
- Following nationalization, priorities include:
- firm efforts to maximize the repayment of related-party loans, and
- appointment of an independent management team to restore the bank’s viability.
- These actions should aim to minimize the cost to the state and taxpayers in line with:
- existing legislation, and
- international best practice.
IMF support and broader objectives
- The IMF will continue to support Ukraine in efforts to:
- build strong institutions,
- enhance transparency, and
- advance structural reforms which are critical to achieve strong and sustainable economic growth.
Source: IMF Statement on the Stability of the Banking System in Ukraine (Press Release No. 16/568, December 19, 2016).