Deals
Ukraine Takes Over Biggest Lender to Cap Sweeping Bank Purge
- Central bank says Privatbank has $5.6 billion capital hole
- Eurobond holders subject to bail-in, finance minister says
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Ukraine will nationalize its No. 1 bank as the former Soviet republic concludes a cleanup of ailing lenders and seeks to snuff out threats to economic recovery.
The government will take 100 percent of PJSK Privatbank after its billionaire shareholders requested help, according to an announcement late Sunday. Home to a third of retail deposits, the lender had a capital shortage of 148 billion hryvnia ($5.6 billion) on Dec. 1, the central bank said. While savers are protected, Eurobond holders must help plug the gap.