Tymoshenko details cabinet’s bailout program for commercial banks

Banks will be recapitalized after their financial position has been examined and rehabilitation programs approved, the premier confirmed.

The list includes banks Nadra, Rodovidbank, Imexbank, Kyiv, Ukrprombank, Ukrhazbank, and Finansy i kredit.

According to the cabinet resolution, the state-owned stake in Rodovidbank will amount to 99%, in Nadra to 91.8%, in Imexbank to 75% + 1 share, in Kyiv to 99%, in Ukrhazbank to 99% and in Ukrhazbank to 75% + 1 share.

Regarding the Finansy i kredit bank, the cabinet will take a decision on the bailout amount later, Tymoshenko added.

In addition, the premier announced that other 26 commercial banks that meet bailout requirements, can apply for recapitalization.

Such requirements provide for a systemic bank with an appropriate number of branches and clients.

Following the banks recapitalization, the government will sell them to private investors via auctions, the premier said.

She informed that the cabinet passed a resolution detailing the bailout procedure. In line with it, the state-owned stake should be no less than 75% + 1 share.