As part of nationalization of PrivatBank, the debts of the institution to Eurobond holders were converted into the bank capital, IDIF’s source reported to FinClub.
The amount of emission of two issues of Eurobonds was USD 335 mln, the edition reports.
After conversion of the debt into capital and its reduction after formation of reserves, 100% shares of PrivatBank were sold to the Ministry of Finance for UAH 1.
Thus, the arrears to Eurobond holders was reduced to zero. The same “writing off” was planned for subordinated debt for USD 220 mln.
As NBU’s Deputy Chairwoman Ekaterina Rozhkova, the new charter of PrivatBank, according to which the Ministry of Finance is 100-percent shareholder of the bank, was sent for registration in Dnipro city.
“We submitted a proposal to the Ministry of Finance on increasing capital of PrivatBank by UAH 116 bln, because we proposed directing UAH 32 bln, according to Art. 41.1 of the Law on Individuals’ Deposits Insurance System, as uncharged liabilities of PrivatBank, for bail-in operations (the conversion of funds of persons, associated with shareholders, into bank capital), - NBU Head Valeria Hontareva said on Monday.
Minister of Finance Alexander Danyliuk announced that Eurobonds are subject to obligatory conversion to the capital.
“They are considered by the National Bank as associated and will be subject to bail-in”, the Minister of Finance said.
