The government of Ukraine may inject more money into the additional capitalization of state-run Oschadbank. “We are discussing all of these issues with the Finance Ministry,” the chairman of the state-run bank Andriy Pyshny said on 25 April, replying to journalists on the need for investment for improving the bank’s facilitie and related extra capitalization, UNIAN reports.
According to Pyshny, the government’s injection into the additional capitalization of Oschadbank between 2014 and 2016 was due to the Russian occupation of the Crimean peninsula, the military conflict in eastern Ukraine, the devaluation of the national currency and Oschadbank’s politically motivated loan portfolio formed over the earlier years.
“Additional capitalization in development is needed as investment, including for the settlement of issues that have still not been addressed,” Oschadbank’s chairman of the board claimed. Pyshny did not elaborate on exact figure, saying that the bank is discussing this issue with Ukraine’s Finance Ministry.
The state-run Savings Bank of Ukraine, Oschadbank, was registered by the National Bank of Ukraine on 31 December 1991. The bank is fully-owned by the Ukrainian state. In 2017, the company received $21.3 in net profit. In February 2018, the Cabinet of Ministers of Ukraine approved an updated strategy for reforming the state banking sector and an updated strategy of Oschadbank, estimating the institution’s net profit in 2022.