The National Bank of Ukraine announced Friday that it has disbursed an emergency loan of approximately $28 million to PrivatBank in order for it to be able to meet its obligations to depositors.
According to the regulator, the bank houses 26 percent of household deposits in the country and is unique in that it is a specialized savings bank with over 50 percent of its liabilities consisting of private deposits. It also houses 15 percent of the total assets within the Ukrainian banking sector.
This loan is conditional and can only be used to meet individual obligations. It also stipulates that collateral in the form of railway transport vehicles and a guarantee from a qualified holder of bank stock will be held against the refinancing loan. This arrangement was determined by a third-party auditing company.
In February, the bank's shareholders approved an increase in capital to approximately $788 million.