Seven Kyiv banks to be nationalised

10:50, 21 April 2009
Ukraine
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The government is taking a controlling stake in commercial banks

Ukraine`s government will nationalise seven troubled banks in coming weeks as part of a multi-billion-dollar bail-out plan intended to stabilise the country`s shaky banking sector, The Financial Times reported.

"The government is taking a controlling stake in those commercial banks whose owners were not able to effectively manage them," Yulia Tymoshenko, Ukraine`s prime minister, said on Friday.

"It would be difficult for us to stabilise the economy and financial situation in the country" without "bringing order to commercial banks which have destabilised the system and weakened trust in banks."

Five of the seven banks to be nationalised this spring rank among Ukraine`s 20 largest banks in terms of net assets. They include Finance & Credit, Nadra, Rodovid, Ukrgasbank and Ukrprombank. The remaining two, Imexbank and Kiev Bank, are medium-sized banks. Nationalisation of the seven banks will increase the state`s stake in the domestic bank market from 13 to 15 per cent.

The Financial Times

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