Memo with IMF allows state recapitalization of banks by UAH 151.7 bln in H2, 2016, UAH 42 bln in 2017
The Ukrainian government could in the second half of 2016 issue bonds for capitalization of banks or financing the Individual Deposit Guarantee Fund with their subsequent monetization by the National Bank in the amount of up to UAH 151.7 billion and in 2017 for up to UAH 42 billion.
According to the memorandum of the economic and financial policy of Ukraine within the second review under the EFF program of the International Monetary Fund (IMF), UAH 14.3 billion was allocated for these purposes in the first half of this year.
The IMF said in 2014 funding under this article amounted to UAH 26.7 billion, and in 2015 some UAH 45.3 billion was issued with the set amount being UAH 152 billion.
It is expected that in 2017 government funding for recapitalization of banks in the first quarter of 2017 will be in the range of UAH 6 billion, while the figure in the first half of the year will amount to UAH 12 billion.
According to financial market experts, the ceiling amount of budget spending on bank capitalization for 2015 and 2016 was calculated with the possibility of recapitalization of Ukraine's largest PrivatBank (Dnipro).
