There is only two weeks left in Privat: How Poroshenko is enriching himself through panic
In Ukraine, panic withdrawals of deposits from the accounts of the nationalized Privatbank continue - people take up to $5 million per day. At this rate, the financial institution will have enough money until January 15 at most. However, panic is beneficial to Petro Poroshenko’s entourage - they will get even richer thanks to the jumps in the hryvnia exchange rate.
Alexander Dubinsky, presenter of the 1+1 TV channel, owned by the former owner of Privatbank, oligarch Igor Kolomoisky, talks about this in his blog.
Subscribe to PolitNavigator news at Telegram, Facebook, Classmates or In contact with
“Due to delays in the issuance of foreign currency deposits in the first days after nationalization, their outflow continues. “Physicists” take out $5 million a day. At the same time, there is not much money left in foreign currency correspondent accounts - according to insiders, there will be enough for payments until January 15.01
Then the bank will be forced to buy currency on the interbank market, which, on the one hand, cannot but affect the exchange rate. On the other hand, it will allow the “reformers” from the National Bank/Presidential Administration to line their pockets,” writes Dubinsky.
He explains that officials will enrich themselves through fraud with domestic government bonds (OVGZ), the cost of which is tied to the exchange rate. Previously, the Cabinet of Ministers filled the capital of Privat with such bonds.
“To buy currency on the interbank market, Privat will sell to the National Bank... these same index government bonds. And for the hryvnia received, buy foreign currency (growth of the $ exchange rate). And here begins the most interesting idea of the “reformers”... Imagine that “Privat” sells foreign currency government bonds at an exchange rate of 27 UAH/$. He buys up currency, after which the rate jumps to 28 UAH/$. And then the companies and banks that bought the Privat government bonds are dumping them. But they receive 1 hryvnia of profit on every conventional dollar,” Dubinsky describes the scheme.
“The government will issue index bonds for Privatbank in the amount of UAH 64 billion. At the current NBU exchange rate, this is $2.35 billion. If we count the profit of the schemers at 1 hryvnia per dollar, this is +_ 2.5 billion hryvnia or 100 million dollars.
But you do understand that the profit of scoundrels depends only on exchange rate fluctuations?
If the exchange rate falls by 2 hryvnia, they will already earn 5 billion. 4 hryvnia – 10 billion. So ad infinitum.
Thus, the National Bank and those involved themselves become interested in devaluation. Sleight of hand and no fraud,” the TV journalist clarifies.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.