OREANDA-NEWS. March 19, 2010. The Cabinet of Ministers announced its intentions to denationalize such banks as Ukrgasbank <UGZB UK U/R>, Rodovid Bank <RODB UK N/R>, and Bank Kyiv, which had been nationalized in mid 2009. With this in mind, the government expects to get back around UAH 20bn of funds spent for those banks’ nationalization and refinancing.

Millennium Capital sees the news to be positive for UGZB, since, among the three banks, it is the most likely to be purchased by foreign investors. In particular, it has a significant reserves amount (46% of the credit portfolio), which may be used for the purpose of its credit portfolio expansion in the future. Meanwhile, Millennium Capital estimates the chances of RODB and Bank Kyiv being acquired as low, since Kyiv’s credit portfolio quality is extremely poor, while RODB’s liquidity was restricted by the redemption of Ukrprombank’s liabilities.