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NBU's First Deputy Chairman Shapovalov Confident That Prominvestbank's Solvency Will Be Restored (15:52, Saturday, October 11, 2008)

ПИБ

The National Bank of Ukraine's First Deputy Chairman Anatolii Shapovalov is confident that the NBU will succeed in restoring Prominvestbank, one of the largest banks in Ukraine, to solvency.

Shapovalov expressed this confidence in an interview published in the Zerkalo Nedely weekly.

"I think that we will succeed not only in returning the savings of depositors in full, but also in saving the bank. It has good assets that offer good profitability," Shapovalov said, adding that Prominvestbank earned a profit of about UAH 500 million in the January-august period.

Shapovalov said that depositors have withdrawn about UAH 3 billion from the bank in the past few days, including over UAH 1 billion on the day before the National Bank of Ukraine took temporary control of the bank (October 7), because of the events surrounding the bank.

"It is obvious that large-scale client panic has started, and it could only be stopped in order to save the bank by appointing a temporary administration to run the bank and imposing a moratorium on withdrawal of deposits," Shapovalov said.

At the same time, according to Shapovalov, it is presently impossible to say conclusively that there was a corporate raid on the bank.

"But the action was probably coordinated. When leaflets start appearing in trams and SMS messages start arriving in mobile telephones, alleging that the bank was bankrupt and that it was necessary to urgently withdraw money from it, it is difficult for depositors not to panic in such a situation," Shapovalov said.

As Ukrainian News earlier reported, Prominvestbank has repeatedly said that corporate raiders were launching attacks on it with the aim of forcing its current owners to sell it.

The National Bank of Ukraine allocated a total of UAH 5 billion for supporting Prominvestbank's liquidity in late September.



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