Govt permits to replenish PrivatBank's capital by indexed govt bonds to balance bank's currency position
PrivatBank (Dnipro) will be capitalized using both hryvnia-pegged government domestic loan bonds and indexed government domestic loan bonds payments, which are pegged to the hryvnia exchange rate to the U.S. dollar.
Ukraine's Cabinet of Ministers made the decision on Wednesday.
"It is proposed to permit the Finance Ministry to issue government domestic loan bonds to capitalize PrivatBank, including indexed bonds in the amount of up to UAH 64 billion. It aims to cover the unbalanced currency position of the bank," Finance Minister Oleksandr Danyliuk said at a government meeting on Wednesday.
He said that the bonds are issued for the period up to 15 years. The interest rate would not exceed 6% per annum.
As reported, as part of PrivatBank's nationalization, the Finance Ministry bought all of its shares for UAH 1, it will then take part in its additional capitalization through acquiring additional shares in the amount not exceeding the minimum capital requirements calculated by the National Bank, the Cabinet of Ministers said in resolution No. 961 dated December 18.
