OREANDA-NEWS. On 30 March 2009 was announced, that the National Bank of Ukraine suggested the Cabinet of Ministers (CabMin) to recapitalize 5 out of 10 commercial banks, which are under the temporary administration. In particular, according to the NBU, bank Nadra < NADR UZ N/R > and Ukrprombank will need around UAH 8-12bn during the recapitalization, while the NBU is currently estimating the recapitalization amount needed for Rodovid Bank < RODB UZ N/R >, Ukrgasbank < UGZB UZ U/R > and bank Finance and Credit.

Millennium Capital sees the news to be NEUTRAL for the above banks, since their recapitalization will most likely be in the form of nationalization, promising no significant improvement in their performance in the nearest future. At the same time the additional fund inflow will assist these banks in the redemption of their current liabilities, thus preserving them from the bankruptcy. Additionally, the government funds may improve the financial performance of the other commercial banks, which in the most of cases were the lenders of the above banks.

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.