OREANDA-NEWS  On 18 February 2009 was announced, that the NBU introduced the temporary administration in bank Nadra < NADR UZ N/R >. The temporary administration is headed by V. Zhukovskaya, deputy head of Ukrsotsbank < USCB UZ BUY > and is set for one year. The NBU also imposed the moratorium on deposits withdrawal from the bank till 10 September 2009. Recall that the potential NADR's investor D.Firtash intended to buy NADR in May 2009 and increase bank's charter fund 3.5 times to UAH 1.8bn in June 2009. Information came up yesterday that the deal was canceled due to pressure from the government.

Millennium Capital considers this news to be NEGATIVE, since D. Firtash was one of the most probable and solvent investor of Nadra in the situation of liquidity shortage. Meanwhile, the temporary administration will hardly recover the bank. This is related to a significant deposits’ outflow from the bank (UAH 2.3bn in 4Q2008), which worsened the bank’s solvency, despite the significant refinancing from the NBU (UAH 8.6bn). At the same time NADR’s administration will blockade around UAH 6bn of other banks’ funds, thus adding to destabilization of the banking system.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.