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Ukraine's government plans to funnel at least 1% of GDP into an increase in charter capital of state-owned Oschadbank and Ukreximbank and into the financial support of the Deposit Guarantee Fund in 2017, according to the National Bank of Ukraine (NBU).
"An amount equivalent to at least 1% of GDP is expected to be injected into an increase in charter capital of Ukreximbank and Oschadbank and the support of the Deposit Guarantee Fund in 2017," reads a financial sustainability report posted on the NBU's official website.
The regulator says that the state banks should start working with profit in future, while their loan policy should be well-considered. This will prevent excessive contributions to the reserves and additional injections in capital.
According to the report, the end of economic crisis in Ukraine will let the NBU complete the clean-up of the banking sector next year.
Read alsoS&P positive about withdrawal of 80 banking licenses in UkraineAs UNIAN reported earlier, 63 banks were designated as insolvent during the clean-up of Ukraine's banking sector in 2014-2015. The banks were transferred to the Deposit Guarantee Fund. Since the beginning of the current year, the NBU has decided to withdraw 17 more banks from the market.
The book value of assets belonging to the insolvent banks managed by the Deposit Guarantee Fund is about UAH 440 billion, or about US$16.8 billion. The Fund plans to earn UAH 7.5 billion, or about $287 million, from the sale of such assets in 2016.