10:49 19.12.2016

Government loan bonds for PrivatBank to be issued for UAH 116-148 bln, first tranche is UAH 43 bln

2 min read
Government loan bonds for PrivatBank to be issued for UAH 116-148 bln, first tranche is UAH 43 bln

Ukraine intends to make good the shortage of capital of the largest bank in the country – PrivatBank (Dnipro) – for the amount from UAH 116.8 billion to UAH 148 billion, Ukrainian Finance Minister Oleksandr Danyliuk has said.

"The shortage of capital will be liquidated in several stages. At the first stage the Finance Ministry will issue bonds worth UAH 43 billion… The largest sum of additional capitalization will be UAH 148 billion and the minimum sum – UAH 116.8 billion," he said at a briefing on Monday.

He said that the government domestic loan bonds for PrivatBank will be issued depending on the situation: the exact sums will be known after the bank's audit.

"The government provides the money in the required amount to stabilize the bank. There are funds for this in the budget. This is not an additional thing. The budget remains balanced, and its indicators meet the limits outlined in our IMF-funded program," Danyliuk said.

NBU Governor Valeriya Gontareva said at the briefing that PrivatBank has not implemented the additional capitalization program and has not met the requirements for obligatory reserves for almost one year. She said that the bank's overdue debt for stabilization loans of their total amount of UAH 19 billion came to UAH 14 billion.

"As of December 1, 2016, inadequacy of PrivatBank's capital grew to UAH 148 billion, and the bank's liquidity considerably fell," she said.

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