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Yatseniuk For Nationalisation Of PromInvestBank (18:26, Tuesday, October 14, 2008)

ПИБ

Speaker of the Verkhovna Rada Arsenii Yatseniuk, acting head of the National Bank of Ukraine in 2004-2005 and member of the NBU council, advocates nationalisation of one of Ukraine's biggest banks PromInvestBank.

He has announced this news reporters after a meeting of the expert economic council.

"I definitely stand for nationalisation of those commercial banks that have found themselves in hard financial condition today and who cannot cope with this situation on their own, starting from PromInvestBank of Ukraine," he says.

In the speaker's opinion, in the situation with PromInvestBank it would be most advisable to buy out the bank's statutory capital and all the shares through Oschadbank (the State Savings Bank), UkrExImBank or by passing a separate decision on nationalisation.

Yatseniuk stressed, many European states do so and it would be wise to apply this practice to Ukrainian commercial banks that suffer financial crisis.

He also remarked that at the meeting of the expert economic council monetary officials discussed draft resolution to be viewed by the National Security and Defense Council on 17 October.

The speaker emphasized the necessity of restoring the citizens' credence to the financial system and to the power in general.

As Ukrainian News earlier reported, Volodymyr Krotiuk, head of the temporary administration at PromInvestBank and deputy head of the central bank, asked clients of the financial institution not to withdraw funds from the bank.

On 7 October, the National Bank introduced a temporary administration at PromInvestBank.

PromInvestBank repeatedly said that corporate raiders were launching attacks on it with the aim of forcing its current owners to sell it.

Late in September, the National Bank allocated a total of UAH 5 billion for supporting PromInvestBank's liquidity.



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