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Europe

Ukraine nationalizes largest bank after stability concerns

Associated Press
Published | Updated
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    A client enters PrivatBank as other clients stand by in the centre Kiev, Uraine, Monday, Dec. 19, 2016. Ukraine is nationalizing its largest bank PrivatBank following concerns over its stability. (AP Photo/Efrem Lukatsky) (The Associated Press)

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    A client takes money from PrivatBank's cash machine as people enjoy in a city cafe in the centre Kiev, Ukraine, Monday, Dec. 19, 2016. Ukraine is nationalizing its largest bank PrivatBank following concerns over its stability. (AP Photo/Efrem Lukatsky) (The Associated Press)

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    A man enters currency exchange office in centre Kiev, Ukraine, Monday, Dec. 19, 2016. Ukraine is nationalizing its largest bank PrivatBank following concerns over its stability. (AP Photo/Efrem Lukatsky) (The Associated Press)

MOSCOW – Ukraine is nationalizing its largest bank following concerns over its stability.

The cabinet agreed late Sunday 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.