October 9th 2018

PrivatBank formed 100% provisions in respect of USD 272.3 million debt of ten foreign borrowers created prior to nationalization.

The Supervisory Board of PrivatBank agreed the decision of the Management Board to form 100% provisions in respect of the debt of 10 foreign borrowers in the amount of over USD 272.3 million (including the principal of USD 196 million and interest of USD 75 million).

Considering significant outstanding amounts under the loan agreements, and the fact that the repayment of the indebtedness that was to take place in the course of compliance by ex-UBOs with their committment to bring the bank’s capital up to the regulatory requirements was not executed, the Bank has to cover losses of prior periods equal to UAH 5.9 billion and book 100% loan loss provisions in September 2018 at the expense of its operating income.

PrivatBank has addressed the Prosecutor General’s Office of Ukraine with a petition on criminal offence in view of recovery of the financial damage to PrivatBank.

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