IBRD urges Ukrainian authorities to accelerate Ukraina Bank crisis resolution

IBRD urges Ukrainian authorities to accelerate Ukraina Bank crisis resolution.The World Bank has recommended that the Ukrainian government accelerate resolution of the crisis at Ukraina Bank, one of Ukraine's largest commercial banks, Paul Siegelbaum, director of the World Bank's department of financial and private sector development, announced in a recommendation at a press conference on Friday, October 20, Ukrainian News reported . "We would not like a situation to be created in which depositors and the population will start to lose confidence," Siegelbaum said. According to Siegelbaum, a World Bank finance mission that has worked in Ukraine for the past two weeks held special discussions on this issue with the Ukrainian government, the National Bank of Ukraine, and the new leadership of Ukraina Bank. Siegelbaum said that experts with the World Bank welcomed the NBU’s decision to appoint a temporary administration to run Ukraina Bank. However, Siegelbaum said that the experts believe that this is merely the first step toward solving this difficult problem. Siegelbaum noted that the capabilities and rights of the temporary administration would be limited until Parliament adopts a new law on banks. According to Siegelbaum, the World Bank is presently lobbying for early adoption of this law.