The second tranche of additional capitalization of Kyiv-based PrivatBank to the tune of UAH 16 billion, which is to cover the depreciated value of property put up as collateral and transferred as repayment of debts, could be reduced at the expense of the development and implementation of a strategy for handling such property, the National Bank of Ukraine (NBU) reported on its website.

"The NBU believes that the capital required to cover impairment losses on fixed assets can be reduced by developing a clear collateral management and debt recovery strategy for the bank," the NBU said quoting NBU Deputy Governor Kateryna Rozhkova as saying.

The NBU said that it is the Cabinet of Ministers that will take a final decision on the amount of the additional capitalization and how it will be split into stages. The decision will be table on the basis of proposals by the NBU and conclusions by a council of experts and analysts.

According to conclusions by Ernst & Young (EY), put up on collateral were the Bukovel tourist complex estimated by the NBU at UAH 11.091 billion, the building of the Bukovel Star Hotel (UAH 1.693 billion), the Dnipro-Arena stadium (UAH 1.543 billion), the Dnipro football club's training base (UAH 332 million), the Mir hotel, the Pidhorodne Agroaviadnepr Aerodrome LLC (UAH 34 million), and a Romanian-based factory that produces plus-size tires.