Pyramid Kolomoisky: PrivatBank became a black hole of the Ukrainian economy

© RIA Novosti / Stringreplace in fotomontaggi KolomoiskyPyramid Kolomoisky: PrivatBank became a black hole of the Ukrainian economy© RIA Novosti / Stringreplace the image Bank

According to the National Bank of Ukraine (NBU), the main shareholders of PrivatBank, turning over ten years of fraudulent transactions caused financial institutions total damage at $ 5.5 billion. The results of the independent audit are transferred to Prosecutor’s office. The scandal around the largest Ukrainian Bank — in the material RIA Novosti.

In the «Laundry»

The theft of billions in PrivatBank opened the employees of American private security company Kroll. On behalf of the national Bank, they conducted an investigation. In the result, it was found that the funds of the Bank at the time when it was owned by the oligarch Igor Kolomoisky, was used in the interests of major shareholders and their affiliated companies.

In Kroll believe that PrivatBank was «Laundry», i.e. launder money. At this point, in particular, the volume of transactions, speed of implementation, the lack of sound economic connection between those who repays the loan to the original borrower, as well as the use of offshore special purpose companies (SPV).

For these transactions, PrivatBank was established a separate unit, provided payments worth billions of dollars. The source and the true purpose of the loans was hiding.

As a result, over 95 percent of the corporate credit portfolio was granted to affiliated entities. Most of these loans are now overdue and is not repaid.

For the Ukrainian authorities, all this was not a revelation. According to the analyst of «ALOR Broker» Kirill Yakovenko, the «top» at least knew what was going on in PrivatBank. «The Bank is in some degree was a pyramid, with which the local oligarchy decided the issues, controlling the greater part of the civil financial transactions in the country», — the expert said in an interview with RIA Novosti.

Bankruptcy would have disastrous social consequences. And it would be possible to put an end to cooperation with the IMF. Recall that one of the requirements of the Fund, allocating tranches of financial support, — the stabilization of the financial system.

Most of the money to rescue the Bank, most likely, was sent from the credits allocated by the West, suggests Yakovenko. According to him, PrivatBank is far from stable, and the government will have to continue to spend budget funds to keep it afloat. It may also have more than 100 billion hryvnia (3.5 billion dollars).

© RIA Novosti / Stringreplace in fotoreceptorilor scoreboard exchange office in Central Kiev. 12 January 2018Pyramid Kolomoisky: PrivatBank became a black hole of the Ukrainian economy© RIA Novosti / Stringreplace in fotoreceptorilor scoreboard exchange office in Central Kiev. 12 Jan 2018
Revenge dish cold

Kiev is definitely not satisfied with how the situation was resolved with PrivatBank, and craves satisfaction. In December last year, London’s High court ruled on a worldwide seizure of assets Kolomoisky and his partner Gennady Bogolyubov 2.5 billion dollars, and also six of their companies.

The decision was taken to enforce a claim nationalized PrivatBank to former owners which are trying to recover two billion dollars.

These are outstanding commitments for additional financing of the Bank’s assets. After the scandalous withdrawal of U.S. auditors the amount of the claim can be increased.

«Given how rapidly declining capital adequacy at the end of 2016, you can guess that the owners were preparing for the loss of control over the Bank and withdrawal of funds — we are talking about approximately 110 billion hryvnia (nearly four billion dollars),» said Yakovenko.

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