The Finance Ministry of Ukraine has completed the fourth stage of additional capitalization of Kyiv-based Privatbank by issuing government domestic loan bonds worth UAH $57.13 million in exchange for the bank’s shares, the ministry has announced on its website, Interfax-Ukraine reports.
The decision to inject more funds, $137.47 million in total, was made by the Cabinet of Ministers on 23 June 2017 based on proposals by the National Bank, recommendations by the council of experts and analysts on the state’s participation in banks’ charter capital, and conclusions made by Privatbank’s independent auditor, Ernst & Young.
The first sum was transferred to the bank in July 2017 in the form of government domestic loan bonds worth $80.43 million, which were exchanged for another issue of shares. The supervisory board of Privatbank met on 18 December 2017 and endorsed the re-assessment of various real estate assets and financial leasing facilities owned by the bank and their impact on its capital.
The re-assessment then revealed that the bank was, in fact, in a much worse condition at the time of its nationalization than it was previously thought. This led to the decision to inject additional capital amounting to around $57.13 million into Privatbank.