Banking

On June 12, the Cabinet of Ministers decisions concerning the recapitalization of three banks were finally disclosed.

Government has approved a total of UAH 9.57 bln (USD 1.26 bln) in aid for 3 Ukrainian banks; Rodovid Bank [RODB UZ, U/R], Ukrgazbank [UGZB UZ, U/R] and Kyiv Bank. Government has approved a total of UAH 9.57 bln (USD 1.26 bln) in aid for 3 Ukrainian banks; Rodovid Bank [RODB UZ, U/R], Ukrgazbank [UGZB UZ, U/R] and Kyiv Bank.

EBRD has announced its intention to provide a USD 80 mln subordinated loan to Forum Bank [FORM UZ, N/R].

EBRD has announced that it will lend USD 100 mln to Ukrsibbank, Ukraine’s 4th largest bank by assets, via a 10-year subordinated loan. The EBRD Board of Directors meeting slated to approve the deal is set for June 30, 2009.

According to a number of sources Ukrgazbank, Rodovid Bank and Kiev Bank will be the first targets of Ukraine’s bank recapitalization program.

According to an EBRD statement, the European Bank of Reconstruction and Development intends to invest up to EUR 20 mln into Megabank’s equity and long-term senior loan. The purpose of this investment is “to support bank’s capital and liquidity positions”.

The National Bank Ukraine (NBU) has revoked Prichornomorya Bank’s license and started the bank’s liquidation process. Prychonomorya becomes the first Ukrainian bank since the beginning of the crisis to fall victim to an NBU decision to liquidate.

According to a statement from IFC, the Board of Directors of IFC is going to consider the allocation of USD 20 mln to Megabank [MEGA UZ U/R] on May 22, 2009. USD 10 mln would be provided under a 3-year convertible loan, and the other half as a 7-year subordinated loan.

The Ukrainian parliament has imposed a moratorium on the alienation of mortgaged real estate, if the property is the place where the owners permanently live. The moratorium comes into force from the day it is published and is valid until the end of the economic crisis, a point which should be determined by a separate parliamentary decision.

Ukreximbank has received a USD 250 mln 10-year subordinated loan from EBRD. The main purpose of this loan is to support the continued funding of Ukraine’s real economy by one of the country’s leading financial institutions, said an EBRD statement.