The government capitalized the Bank by 5.75 billion

The Cabinet of Ministers has increased the capitalisation of the state «Oschadbank» 5.75 billion UAH by additional issue 4957 of shares of existing nominal value while retaining the state ownership of 100% shares of the Bank. The decision taken by the government at the meeting on 27 December and published on the government portal.

It is noted that the decision to increase the authorized capital of the Bank made on the recommendation of the National Bank of Ukraine in connection with the write-down of financial assets of the Bank and the deterioration in the financial condition of the borrowers and the depreciation of the collateral.

In the explanatory note to the document States that the revaluation of currency positions in the formation of reserves in the future two years will give a negative effect on the Bank’s capital in the amount of 1.05 billion UAH, and the effect on equity from increase in credit risk would amount to 4.7 billion UAH.

To achieve the 10% adequacy of regulatory capital and the government took the decision to increase the capital of Oshchadbank.

This year NBU has already provided «Oschadbank» refinancing in the amount of UAH 5.4 billion. The proposal of the National Bank of Ukraine to approve the capitalization of the Bank was adopted by the government at the meeting on 1 February.

Such decision in respect of «Oschadbank» the Cabinet adopted in January 2016. Then the government further contributed to the authorized Fund of «Oschadbank» almost 5 billion UAH.

In February 2016, the national Bank has identified three country’s largest Bank – «PrivatBank», «Oschadbank» and «Ukreximbank» – systemically important. Also, the Cabinet began a «strategic reform», «Oschadbank» and the entire state of the banking sector.

The share of state banks in banking system of Ukraine amounted as of March 2016 about 30%. Second and third place in the country in terms of assets held, «Oschadbank» and «Ukreximbank». In particular, as of September 2016 assets «Oschadbank» was $ 191 billion.

The government capitalized the Bank by 5.75 billion 28.12.2017

Декабрь 28th, 2017 by
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