REUTERS
The Cabinet of Ministers announced its decision to inject UAH 15 billion in additional capitalization of two state-owned banks – Ukreximbank and Oschadbank, and instructed the Finance Ministry to issue ten-year government bonds worth the corresponding amount.
Relevant resolutions No. 33 and No. 31 were published on the government's website.
It is reported that the government allocates UAH 9.3 billion for the statutory fund of Ukreximbank by additional issue of 6.3 million shares of the bank, with a state maintaining 100% ownership. A total of UAH 4.95 billion will be allocated for the statutory fund of Oschadbank by additional issue of 4,272 shares, with 100% of the bank's shares owned by the state.
The Finance Ministry will issue ten-year domestic government loan bonds with an index-linked value of UAH 9.32 billion and UAH 4.95 billion, and a 6% interest rate, according to the report.
Read alsoCabinet to inject UAH 15 bln in additional capitalization of two state banksAs UNIAN reported earlier, on January 27, the Cabinet of Ministers decided on additional capitalization of two state-owned banks. In particular, the statutory fund of Oschadbank will be increased to UAH 34.8 billion, and that of Ukreximbank – to UAH 31 billion.
Public joint-stock company State Savings Bank of Ukraine or Oschadbank was registered as an independent banking institution with the National Bank of Ukraine on December 31, 1991. Oschadbank is a 100% state-owned bank.
Ukreximbank has been operating on the Ukrainian market since 1992 and is one of the largest financial institutions in terms of assets, with 100% of its shares owned by the state.
Read alsoIMF next tranche to help increase NBU reserves, allow greater currency stability – JareskoThe regulator noted it has no plans to monetize government bonds for additional capitalization purposes.