PrivatBank welcomes the important decision announced today by the Bank of England to recognise, under section 89H of the UK Banking Act 2009, the bail-in by the National Bank of Ukraine in December 2016 of four loans totalling US$ 595 million which were made by UK SPV Credit Finance plc to PrivatBank. That bail-in by the NBU formed a critical part of the resolution actions taken by the Ukrainian authorities on the nationalisation of PrivatBank.
By this decision, the Bank of England, with the approval of Her Majesty’s Treasury, has recognised that the bail-in undertaken by the NBU was broadly comparable in its objectives and anticipated results to those of the UK resolution regime. The Bank of England’s recognition decision gives effect to the bail-in of the four loans in question as a matter of English law.
This decision is highly significant for a number of reasons including that it confirms from the perspective of English law the correctness of the grounds on and objectives with which the bail-in in question was undertaken by the NBU.
Further details regarding the Bank of England’s decision are available here, and PrivatBank also publishes a copy of the third-country instrument by which the Bank of England’s decision to recognise the bail in has been made.