The Cabinet of Ministers decided to capitalize Oschadbank 5.75 billion. The decision the government passed on December 27, reported Ukrainian news.
In particular, the Cabinet decided to increase the authorized capital of the Bank by 5.75 billion through the issue 4957 additional shares of existing nominal value with preservation of 100% of shares in state ownership.
For capitalization of the Bank the Ministry of Finance will issue government bonds for that amount with a maturity of 16 years and an interest rate of 9.2% per annum in exchange for shares of the additional issue of the Bank.
As a result, Bank’s Charter capital will increase to UAH 49.5 bn.
Earlier, first Deputy Finance Minister Oksana Markarova reported that Oschadbank will need a recapitalization, in connection with the deteriorating quality of the loan portfolio.
Earlier it was reported that the Ministry of Finance of Ukraine has developed the draft strategy of the state banks, intended to 2022 inclusive.