Another Privatbank depositor wins case against bail-in

2017/11/20 15:19:12

Analyst: “All this promises little positive for the Ukrainian government, whose costs of the Privatbank bailout may increase by up to an additional UAH 29.4 bln in the mid-term.”


 

 

 

 

 

 

 

 

 

 

 

 

 

 

KYIV, Nov 20, 2017 - Olena Bogoliubova, the former wife of key Privatbank (PRBANK) shareholder Gennadiy Bogoliubov, won a case in a first-tier court against the bail-in of her deposits in the bank amounting to UAH 0.5 bln, Concorde Capital informed clients based on a finbalance.com.ua news site report on Nov. 19. The local court’s ruling was approved in early September, but in early November the appellate court ruled to return the case to a local court in order to “remove typos” and make some additional rulings.

 

Recall, as part of the nationalization of the insolvent Privatbank in December 2016, Ukraine bailed in UAH 29.4 bln of the bank’s liabilities, including UAH 14.7 bln in Eurobonds and UAH 14.7 mln in deposits of related parties. One group of bailed-in depositors, the Surkis family, won a case against the bail-in in of UAH 1.1 bln in an appellate court in November.

 

Concorde analyst Alexander Paraschiy added: “So far, the state is losing most of the cases in local courts against those defined as related parties of the bank, but the state still has a chance to win in the higher courts. In any case, the interim victories of related depositors of Privatbank should encourage the unrelated holders of the bank’s senior Eurobonds, who clearly have a much better chance to win court cases against the bail-in. But since these bondholders chose to sue in international court it will take a lot of time until the rulings in their cases.

 

“All this promises little positive for the Ukrainian government, whose costs of the Privatbank bailout may increase by up to an additional UAH 29.4 bln in the mid-term.”

 

 

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For more information, link here: www.concorde.ua 

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