Ernst&Young confirmed the low quality of the loan portfolio of the nationalized Bank
Independent auditor Ernst&Young (EY) confirmed the low quality of the loan portfolio of the nationalized “PrivatBank”.
This is stated in the report of the National Bank of Ukraine.
It is noted that in accordance with the financial statements of the companies as at 31 December 2016, confirmed by the auditors of EY in 2016 allowances for impairment of loans to legal entities increased by 155.9 billion.
“Moreover, the auditors identified a need for additional formation of an additional reserve of the Bank by 10 billion UAH, which led to the negative value of the balance capital of PJSC CB “PrivatBank” in 882 million. as at the end of 2016″, – stated in the message.
It is noted that the auditor has not confirmed the financial results and cash flows of the Bank due to the fact that I could not obtain sufficient audit evidence regarding the period in which took place the depreciation of loans and advances to customers.
This conclusion, according to the NBU, suggests that financial problems in PJSC CB “PrivatBank” started long before 2016.
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