Gov't to raise banks' capitals in exchange for the part of shares

The Government has created a mechanism to support commercial banks through participation in their statutory capital. Prime Minister of Ukraine Yulia Tymoshenko imparted during the press conference that a respective Ordinance of the Cabinet of Ministers on the system of recapitalization of commercial banks of Ukraine had been endorsed at its sitting.

“We will be ready to tackle improvement of capitals of our national banks from the end of the following week,” the Head of Government emphasized, Government portal informed.

Yulia Tymoshenko explained in order to receive increase of statutory capital from the Government in exchange for the part of its shares a bank have to pass special diagnostic procedures, that notably will determine an amount of supplementary interests. 

According to the Premier, all the decisions concerning national capitalization of banks will be approved during a Government sitting in two parts – a decision on involvement into the statutory capitals of a concrete bank and on conditions of such participation and amounts of capitalization.