OREANDA-NEWS. April 22, 2009. The Gov’t has adopted a decision on recapitalization of 7 commercial banks and has defined conditions of participation of the state in control stocks of these banks. Prime Minister of Ukraine Yulia Tymoshenko disclosed today at a press conference.

“Through participating in the capital the Government takes control stock of these banks into the state property and establishes order after the private owners have failed to perform qualitative activity in this area,” Yulia Tymoshenko clarified the situation.

According to her, after holding recapitalization the Government will own 91.8% of stock of Nadra bank, 99% of Ukrprombank, 99% of Rodovid Bank, 75%+1 vote of Ukrgazbank, 75%+1 vote of Imexbank and 99% of Kyiv bank. Yulia Tymoshenko noted this day the negotiation process with the owners of Finance and Credit bank was underway.

Yulia Tymoshenko emphasized the system banks (26 in number in Ukraine) incur recapitalization which have certain problems and on accord with their owners can be recapitalized with controlling stock of the state – not less than 75%+ 1 vote. “Out of these 26 banks a free wish can be expressed by the owners having a desire on such conditions to become co-owners with the state and receive additional contributions into the capital,” the Head of Government stressed.

Moreover, Yulia Tymoshenko stressed to ensure the recapitalization procedure is to be held the Government and the NBU needs three to four weeks and “after that the Government will be ready to invest capital and return these banks to normal life”.

The PM emphasized the Gov’t will be the owner of the banks by the moment of their financial invigoration: “When the banks have recovered, an order established, the Government, undoubtedly, will give them to private owners through open auctions”.