Ukraine's Finance Ministry by late May would approve the final steps to complete rehabilitation of PrivatBank.

This is outlined in the action plan approved by the Cabinet of Ministers of Ukraine at a government meeting on April 12 to implement the letter of intent of the government and the National Bank of Ukraine (NBU) sent to the International Monetary Fund (IMF) and the memorandum of economic and financial policies dated March 2, 2017.

The action plan to finish rehabilitation of the financial institution drawn up on the basis of the comprehensive inspection and the business plan of the bank drafted by its supervisory board and the board of directors would include the coverage of the bank's need in capital.

As reported, the revised memorandum signed between the Ukrainian government and the IMF foresees the issue of government bonds worth up to UAH 98 billion, or 3.6% of GDP, in 2017 to handle additional capitalization of banks and the Individuals' Deposit Guarantee Fund in Ukraine. At the same time, the document posted on the IMF's website does not elaborate on the list of such banks and amounts of additional capitalization of the fund.

The Ukrainian government on December 18, 2016 decided to nationalize Ukraine's No. 1 bank, Dnipro-based PrivatBank. It became wholly owned by the state. After the government became its owner, the Finance Ministry additionally injected UAH 116.8 billion into it, including UAH 9.8 billion in 2017.

Early in February 2017, PrivatBank CEO Oleksandr Shlapak did not rule out there could be additional capitalization after the audit of its capital.

PrivatBank plans to inform the Finance Ministry and the NBU early in April about how much funds it needs for further capitalization. According to Shlapak, the sum will incorporate both Cyprus-based and Crimean-based assets held by the bank.