The Cabinet of Ministers of Ukraine decided to continue recapitalization of the nationalized PrivatBank with an additional UAH 9.8 billion influx in the framework of the decision on the capital increase by UAH 116.8 billion, adopted in December 2106, which has not been implemented in full, as reported on the government website, citing Decree No. 89 of February 22.
According to the Decree, the Ministry of Finance will issue domestic bonds worth up to UAH 9.8 billion with a 15-year maturity, the indexed value and a yield of 6% per annum, followed by making them on behalf of the state a payment for the additionally issued shares in PrivatBank.
The memo to the Decree notes that an earlier recapitalization, according to the December decision, amounted to UAH 107 billion.
Earlier, the Cabinet of Ministers at its extraordinary meeting on Sunday, December 18, decided to transfer PrivatBank to 100% state ownership. The decision was made based on the results of the meeting of the National Security and Defense Council.
Minister of Finance Oleksandr Danyliuk noted that the bank`s capital increase would take place in several stages. The maximum amount of capital increase will be UAH 148 billion, while the minimum amount will be no less than UAH 116 billion.
In early February, Head of the Board of the nationalized PrivatBank Oleksandr Shlapak said that the bank`s loss after the formation of reserves was estimated at UAH 135 billion.
