PrivatBank unveils new SME loan program

The endeavor aims to create one million jobs for Ukrainians by the end of 2018.

PrivatBank, the largest commercial bank in Ukraine, unveiled its new small and medium enterprises loan program at the National Press Club in Washington DC. The SME lending program, Country of Successful Business or KUB, aims to create one million new jobs by the end of 2018.

PrivatBank Chairman Alexander Dubilet outlined the KUB program and highlighted its progress so far. The program, which offers loans of between USD $200 and $20,000 to entrepreneurs, has already created 71,000 new jobs as of October 2016.

Over 23,000 entrepreneurs have received loans amounting to USD $78 million.

“We are very excited about the potential of this program. We feel it will have a positive impact on the Ukrainian economy,” said Chairman Dubliet at the launch.

At a time when the Ukrainian economy is faltering and several banks have been shuttered, PrivatBank continues to provide jobs and essential financial services to Ukrainians.

Unemployment in Ukraine is at 10.3 per cent and rising, and 30 per cent of Ukrainians cite the lack of financial opportunities as their main obstacle for business expansion.

The goal of one million jobs by 2018 will give entrepreneurs the funds they need to expand their businesses and invigorate the economy.

This program, along with the necessary reforms undertaken by PrivatBank in cooperation with the National Bank of Ukraine and the IMF, will get the economy back on track.

PrivatBank will host business forums in the different regions of Ukraine to educate the public on the offerings of the program.

PrivatBank is the largest taxpayer by financial institution and one of the largest job creators for Ukraine.

To find out more about KUB, please visit the website.

Our Related-Party Loans Are Minimal at PrivatBank

PrivatBank’s related-party loans accounted for just 4.71% of its total loan portfolio in September 2016.

“Ukraine Bank Eludes Curbs” (Money & Investing, Oct. 6) contains an inaccurate third-party estimate about PrivatBank’s related-party lending. Using the National Bank of Ukraine’s own methodology, PrivatBank’s related-party loans accounted for just 4.71% of its total loan portfolio in September 2016. When applying International Financial Reporting Standards, related-party lending stood at 17.7% at the end of 2015, as confirmed by a PwC audit. It is nothing like the 40% quoted in the article. Furthermore, only half of our related-party loans concern PrivatBank directly, with the rest related to the companies of the shareholders. We endeavor to exceed the expectations of all valued customers, shareholders and regulators.

Oleksandr Dubilet

Chairman, PrivatBank
Dnipro, Ukraine

Read at The Wall Street Journal.

PrivatBank Continues to Exceed NBU Requirements for Related-Party Loans

PrivatBank reiterated today that loans issued to related parties accounted for just 17.7% of the bank’s total loan portfolio at the end of 2015.  This figure meets the requirements of International Financial Reporting Standards (IFRS) and was confirmed by a PwC audit.  Such loans by PrivatBank have historically not exceeded 20%, and any recent short-term increase has been the result of exchange rate fluctuations or reductions in the bank’s total portfolio.

PrivatBank Chief Executive, Oleksandr Dubilet, commented, “PrivatBank takes its obligations to its customers, the National Bank of Ukraine and all international standards very seriously.  Using the methodology provided by the NBU, as of September 28, 2016, the related-party loans of the bank accounted for just 4.71% of the total loan portfolio.”

PrivatBank’s ratio of maximum credit exposure under transactions with related parties – otherwise known as NBU’s “N9 ratio” – stood at 29.29% on September 1, 2016 and was in line with the Ukraine banking system’s average N9 ratio of 29.06%.  Approximately half of the related-party loans concern PrivatBank directly, and the rest are related to the companies of the shareholders.

Mr. Dubilet continued, “Despite the fact that NBU methodology and IFR standards differ somewhat, we endeavor to meet the requirements of both.  PrivatBank continues to work closely with the NBU on this and other issues to ensure that we exceed the expectations of our valued customers, shareholders and regulators.”