Banking

The Ukrainian Cabinet of Ministers has developed a project that proposes a sale in the market of 25% of the government share of financial institutions that experienced government recapitalization. During the month, the plan is expected to be approved or rejected.

National Bank of Ukraine (NBU) cut interest rates by 0.75 p.p. to 7.75%. Interest rates on active operations remained unchanged: The refinancing rate on collateralized overnight loans is 9.5% and on blank overnight loans is 11.5%.

Ukraine’s international reserves grew by 4.6%, to USD 30.9 bln, during July 2010. From January to July 2010, Ukraine’s international reserves grew by USD 4.4 bln (16.5%).

International rating agency, Fitch, rated Ukreximbank new Eurobonds issue (USD 500 mln of volume, 8.375% as а coupon) with long-term rating B-.

Ukreximbank, government-owned bank, the third largest Ukrainian bank by assets, intends to issue USD 500 mln in Eurobonds with a 2015 maturity and 8.5% coupon, Reuters reports.

Ukreximbank, government-owned bank, the third largest Ukrainian bank by assets, is conducting meetings with investors to discuss the possibility of funds raising via issue of Eurobonds, Interfax reported. No official comments from bankers available.

The Fitch ratings agency has upgraded its ratings outlook for nine Ukrainian banks from “negative” to “positive”. The banks in question are UkrSibbank, Ukrsotsbank, Bank Forum, ProCredit Bank, Pravex-Bank, VTB Bank, Oshadbank, Ukreximbank, and Privatbank. Currently, all of these banks have B- long-term credit rating.

The two major Ukrainian foreign-owned banks reported on their 4Q09 financial results. Ukrsotsbank [USCB UZ] reported a UAH 42 mln net income in 4Q09. In FY2009, the Bank posted a UAH 127 mln net income.