The former owners of PrivatBank Igor Kolomoisky and Gennady Bogolyubov has not complied with its obligations under the aim to contribute collateral.
The former shareholders of nationalized PrivatBank Igor Kolomoisky and Gennady Bogolyubov in his letter to the Prime Minister of Ukraine Volodymyr Groisman from 16 December 2016 provided possibility of prolongation of the restructuring of several loans to the Bank until 2018.
This is stated in the text of the letter, which is in the possession LB.ua and which is provided below (click to enlarge). A necessary condition for the extension named restructuring 75% of the aggregate principal amount of the respective loans prior to July 1, 2017.
The letter is not marked with a specific company and the amounts and refers to loans “provided by the Bank to legal entities, on the terms as collateral on loans, as reflected on the Bank’s balance sheet on the date of nationalization, of the property the value of which is confirmed by independent appraisers taking into account requirements of the National Bank of Ukraine regarding the definition of the Ukrainian banks credit risk on active operations of banks in the amount of formed FGVFO reserves for losses on active operations of Bank, taking into account the impact of exchange uncomplicated monetary liabilities to related parties to shares of the additional issue of the Bank.”
Kolomoisky and Bogolyubov also agreed to the implementation of these commitments was confirmed by an independent international auditing company selected by the Ministry of Finance.
In order to understand what credit is it will require a separate legal review. However, we know that current and former shareholders of PrivatBank differ in assessing the amount of loans issued to related parties to the nationalization of the Bank, dozens of times.
Independent auditor Ernst&Young (EY) confirmed the low quality of the credit portfolio of PrivatBank, however, has not confirmed the financial results and cash flows of the Bank due to the fact that he could not obtain sufficient audit evidence regarding the period in which occurred the depreciation of loans and advances to customers.
In the annual report of PrivatBank for the year 2016 refers 9,98 billion hryvnia loans issued to related parties. According to the Bank’s financial statements confirmed by auditors, EY, as of 31 December 2016, the provision for impairment of loans to legal entities increased by 155,9 billion.
We will remind, in the evening of Thursday 29 June 2017, Finance Minister Alexander danyluk said that the former shareholders of PrivatBank have not yet fulfilled their obligations.
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