Joint Statement by the Ministry of Finance, National Bank of Ukraine, and PrivatBank

4/18/19

At this important moment for the future of Ukraine, the following is worthy of special emphasis:

1. Today, PrivatBank is the biggest and most profitable financial institution in the country, with 22 million Ukrainians as its customers. The bank operates in a transparent and stable manner, comprehensively fulfilling its obligations to clients.

2. Yet only two years ago, the state was forced to save the bank in order to maintain the financial stability of the entire country. This bailout cost Ukraine UAH 155 billion in taxpayer money.

3. The nationalization of PrivatBank was a necessary step that took place in accordance with the current legislative framework and was supported by the National Security and Defense Council and the Government of Ukraine. The only alternative to nationalizing PrivatBankwas its liquidation, which was not an option in view of the bank’s importance for the financial system. Returning the bank to its former owners through the reversal of nationalization is impossible.

4. The bank was declared insolvent as a result of large-scale fraudulent schemes, which caused the bank to suffer a loss of at least USD 5.5 billion. Recovering these funds and holding those guilty accountable is the responsibility of the bank and one of the conditions stated in the Memorandum on Cooperation between Ukraine and the International Monetary Fund.

5. The Ukrainian people are the sole shareholder of PrivatBank. We are determined to protect the interests of the bank's shareholders under any circumstances, relying on our mandate, Ukrainian legislation, and the rule of international law, and with the support of the international community and the civil society of Ukraine.

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