Government decides to recapitalize two biggest state-owned banks in Ukraine

1/28/16

In accordance to the proposals of the National Bank of Ukraine and recommendations of the Expert and Analysis Council on state shares in the registered capital of banks, the Government of Ukraine passed a decision on January 27 to increase the registered capital of two state-owned banks – Oshchadbank and Ukreximbank. The Government adopted its decrees «On the increase of the registered capital of the public joint-stock company «State Oshchadny Bank of Ukraine» and amendments to its articles» and «On the increase of the registered capital of the public joint-stock company «State Export and Import Bank of Ukraine».

The volume of recapitalization was decided on the basis of a review (check of the assets’ quality and stress-test) conducted last year by the National Bank of Ukraine in line with the terms of reference agreed with IMF and World Bank experts. The registered capital of the Oshchadbank shall be increased by UAH 4.96 b to UAH 34.8 b. The Ukreximbank shall be recapitalized by UAH 9.32 b to increase its registered capital to UAH 31 b.

The recapitalization shall contribute to the financial stability of both state-owned banks and make it possible to attract funding from international markets to support the development of the Ukrainian economy.

«Increasing the capital and further implementing high international standards for independent corporate governance at state-owned banks, we expect the financial performance of these banks to improve substantially in the mid-term run», deputy Minister of Finance Artem Shevalev said.

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