The government decided to capitalize the “PrivatBank” for nearly 10 billion UAH

The Cabinet of Ministers decided to continue the recapitalization of nationalized PrivatBank 9.8 billion in the past decisions on capital increase to 116.8 billion.

About it reports UNIAN with reference to the resolution No. 89 of February 22.

According to the document, the Ministry of Finance will hold the issuance of bonds of internal state loan in the amount of 9.8 billion UAH with a maturity of up to 15 years, the indexed value and a YTM of 6% per annum with a subsequent payment on behalf of the state in payment for the shares of “PrivatBank” additional issue.

Previously in the December decision, the Bank capital was increased by 107 billion.

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We will remind, on the nationalization of “PrivatBank” became known late on Sunday evening, 18 December, 2016. Wednesday, December 21, the financial institution officially became a state property. The Ministry of Finance bought “PrivatBank” Deposit guarantee Fund of natural persons for a symbolic one hryvnia.

The transition period lasted for 72 hours. Monday, 19 December 2016, the head of the NBU Valeria Gontareva said that “Privat” is classified as insolvent. According to her, the Bank’s capital deficit was 116 billion UAH, and 97% of the corporate loan portfolio was distributed to companies related to shareholders. This “hole”, the state plans to close the bond issue Treasury bonds. The first tranche of securities of 43 billion UAH will be released before the end of the year.