: :inin Kyiv (EET)

Finance ministry: No additional capitalization for Oschadbank, Ukreximbank in 2017


The Ukrainian Finance Ministry does not plan additional capitalization for state-owned Oschadbank and Ukreximbank this year, according to the country`s First Deputy Finance Minister Oksana Markarova.

”We do not expect the additional capitalization of Oschadbank and Ukreximbank this year,” Markarova said when presenting a public report on the state budget for 2016 on March 17.

She added that the two banks` capital increase had already been completed following their stress testing conducted by the National Bank of Ukraine (NBU) and the reassessment under the new rules of the regulator.

In her words, PrivatBank, which was nationalized in December last year, may require extra capitalization. The amount needed for its additional capitalization will be known after the audit of the bank is over.

Markarova also noted that the finance ministry this year does not expect significant amounts of lending to the Individual Deposit Guarantee Fund, since the fund handled the bulk of its obligations in previous years.

As UNIAN reported, Ukraine`s Cabinet of Ministers in March 2017 injected UAH 4.7 billion, or about US$175 million, in additional capitalization in Ukreximbank and UAH 5.4 billion, or $200 million, in Oschadbank by issuing 15-year government bonds in exchange for the banks` new shares.

In early February 2017, the Cabinet increased the capital of Oschadbank and Ukreximbank by UAH 3.5 billion, or $130 million, and UAH 3 billion, or $112 million, respectively.

On December 18, 2016, the Cabinet decided to nationalize Ukraine`s No. 1 bank, Dnipro-based PrivatBank, being guided by the recommendations of the National Security and Defense Council. To this end, it issued government bonds worth UAH 117 billion, or $4.3 million, while the NBU purchased the bonds totaling UAH 25.8 billion, or $959 million, at the end of December 2016, and more bonds worth UAH 1.4 billion, or $52 million, in January this year.

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