Ukraine's Finance Ministry at the end of 2016 additionally injected UAH 107 billion into PrivatBank (Dnipro), Fitch Ratings has said in a press release.

At the end of the year Fitch Ratings downgraded ratings of the financial institution.

Fitch said that in December the Finance Ministry paid UAH 107 billion for shares of PrivatBank. The positive results of the additional capitalization of the bank, including thanks to the issue of currency pegged government domestic loan bonds, would help the bank to provide for liquidity of its currency pegged liabilities and expect that the bank's ratings would be revised upwards to the sovereign level during the next revision by Fitch.

As reported, Ukraine's Cabinet of Ministers under a proposal of the National Bank of Ukraine (NBU) and shareholders in PrivatBank on December 18 decided to nationalize the financial institution. The volume of domestic loan bonds to be issued for the purposes was assessed at UAH 116.8 billion - UAH 148 billion.

The government on December 19 approved that the Finance Ministry will buy all PrivatBank's shares for UAH 1.

The Individuals Deposit Guarantee Fund acting a temporary administrator of the bank, on December 31 increased its charter capital by UAH 29.438 billion, to UAH 50.695 billion thanks to the purchase of additionally issued shares. These shares were later sold to the state for UAH 1.

Then the ministry was to take part in the additional capitalization of PrivatBank via acquisition of the additionally issued shares at the cost not exceeding the minimum need in capital calculated by the NBU.

The government instructed the Finance Ministry to issue government domestic loan bonds in the amount of up to UAH 116.8 billion, maturity up to 15 years and at no more than 10.5% per annum. The bonds will be used to pay for the additionally issued shares of PrivatBank.