Ukraine is nationalizing its largest bank following concerns
over its stability.
The cabinet agreed to move PrivatBank into full
state ownership, saying the move was carried out "in close coordination
with international financial organizations" and with the consent of
PrivatBank's owners - an apparent reference to the oligarchs Ihor Kolomoisky
and Hennady Boholyubov, who together control over 90 percent of the bank.
Ukrainian President Petro Poroshenko says in a statement
that the decision "saved both the bank and the banking system" in
Ukraine.
PrivatBank lacked capital and had been hit hard by the
conflict in eastern Ukraine and the accompanying economic crash in 2014 and
2015, Poroshenko adds. He is also pushing for additional deposit guarantees for
the bank's customers.
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