Ukraine largerst bank experiences total failure in payment transaction
Payment systems in Ukraine have recently been subject to constant disruptions that are taking their toll on inner-banking transactions and client withdrawals and payments.
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A woman wearing a Santa hat uses an ATM machine belonging to Ukraine's largest bank PrivatBank, Kiev, Ukraine (AFP)
Ukraine's largest bank, PrivatBank, is experiencing massive transaction failures, as clients report on Saturday that they are unable to withdraw cash or pay by card.
The technical issue is speculated to be rooted in the disruption of Ukrainian payment systems as clients of different banks reported similar transaction failures, according to Kyiv News.
PrivatBank spokesperson says that the bank is working on resolving the issue which has disrupted payments all over Ukraine. Suspilne, a Ukrainian broadcaster revealed that inner bank money transfers are also experiencing disruptions.
The PrivatBank, founded in 1992, is Ukraine's largest bank, boasting $8.14 billion of liquid assets in 2021. The Bank was nationalized by the Ukrainian government in December 2016 and has since then been under the process of re-privatization, with the crisis in the country halting the efforts.
Since its previous owner was stripped from his stakes in the financial institution, PrivatBank has taken on several lawsuits to claim Ihor Kolomoisky assets in banks all over the world including Cyprus and the UK.
The NATO-prolonged war in Ukraine has devastated the Ukrainian economy and local industries. In 2022 Ukrainian Minister Serhii Marchenko said, "Tens of areas where hostilities are taking place account for half of the GDP. The most important sections are Kharkov, Kiev, and Mariupol, which made a very significant contribution to the GDP."
"Many supply chains are completely broken, many enterprises are physically destroyed, some are unable to work in war mode, many workers simply left," The Ukrainian Minister underlined.
According to Marchenko, the Ministry of Economy believed that the losses would cost Ukraine between a third to a half of its GDP. However, he also highlighted other estimates, which suggested that the losses would amount to a whopping $500 billion.
