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Ukraine's Cabinet of Ministers has backed the Finance Ministry's proposal that two state-owned banks should receive additional capitalization worth UAH 6.5 billion, or US$241 million, according to a Cabinet decision.
Some UAH 3.5 billion and UAH 3 billion will be injected into Oschadbank and Ukreximbank, respectively.
Read alsoEBRD, Ukraine agree to cooperate in transformation of Oschadbank"The banks will receive additional capitalization through an exchange of shares for government bonds. It is stipulated in the budget for 2017," Ukrainian Finance Minister Oleksandr Danyliuk said, adding that the estimates had been prepared by the National Bank of Ukraine.
The additional capitalization of the banks is a necessary step to continue the stabilization of the banking system, he said.
UNIAN memo. Currently, there are four state-owned banks in Ukraine, namely Ukreximbank, Oschadbank, Ukrgasbank, and PrivatBank. The latter was nationalized in late 2016. This year, the Finance Ministry and the National Bank of Ukraine are expected to revamp a strategy for the development of the state-owned banks.