OREANDA-NEWS. On 28 April 2009 was announced, that according to the NBU the regulator adopted the list of banks which were to be recapitalized by the government. The list of banks includes bank Nadra < NADR UZ N/R >, Ukrprombank, Ukrgasbank < UGZB UZ U/R >, Imeksbank, Finance and Credit bank, bank Kyiv and Rodovid bank < RODB UZ N/R >. The required condition of the banks recapitalization is the purchase of their control stakes by the state. Namely, the government will by 91.8% of bank Nadra, 99% of Ukrprombank, 75%+1share of Ukrgasbank, 75%+1share of Imeksbank, 99% of bank Kiev, 99% of Rodovid bank. Meanwhile the stake of the Finance and Credit bank to be nationalized is currently being discussed. The recapitalization will take place after the Finance Ministry estimates the financial conditions of the above banks.

Millennium Capital sees the recapitalization of the above banks to be one of the requirements to receive the IMF second tranche, expected in mid May 2009. At the same time we expect that a significant amount of the tranche will be directed on the banks recapitalization, which requires around UAH 20bn. Millennium Capital expects that the funds from the recapitalization will be directed on both retail deposits repayment of the above banks (total around UAH 35bn), compensation of other banks’ funds (UAH 20bn) as well as on their external debt redemptions (UAH 1.5bn). This will increase the hryvnia liquidity of the market, which threatens the next wave of hryvnia devaluation.

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.