OREANDA-NEWS. November 11, 2011. The crisis occurrences in the world economy have considerably influenced the financial sector of the country. The business model of many domestic banks has not passed the stress test and required serious changes. However, for the strong banks the recession was not only a test but it was also a unique chance to prove their sustainability under radically new circumstances. This opinion was expressed by the Chairman of the Management Board of Kreditprombank Viktor Leonidov in his article for leading business paper "Forbes", reported the press-centre of Kreditprombank.     

According to him, Kreditprombank as other representatives of business world has suffered from the impact of many negative market factors. "It was in order to neutralize the unwanted consequences and to implement the liabilities that the shareholders and top management of the bank made a decision to perform the restructuring of the loan portfolio being formed during 2005-2007 by means of the active steps in capital markets  as the restructuring is one of the most civilized financial instruments allowing to maintain business and reputation", - stressed Viktor Leonidov.

The manager of Kreditprombank noted that the restructuring process started in the bank in 2009 with ratification of the Framework Agreement. In September, 2010 Kreditprombank signed the Consolidated Facility Agreement with its foreign lenders that stipulated that over USD 300 MIL of the Bank’s debt will be extended for up to five years at competitive interest rates. In addition, a conversion of USD 100 MIL of debt into equity of Kreditprombank will be completed.

"By results of the Agreement’s implementation the charter capital of the Bank will reach USD 2.6 BIL, the existing shareholders will retain over 52% of votes. In the equity they are represented by two companies: FINTEST HOLDING LIMITED (Cyprus) and HOMERTRON TRADING LIMITED (Ireland). The rest of the voting shares should belong to the company KALOUMA HOLDINGS LIMITED (Cyprus) the shareholders of which are 28 leading institutions, including European Bank for Reconstruction and Development, Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), Cargill Incorp., Raiffeisen Bank International AG, London Forfaiting Company Limited, etc. After registration of the new Charter and approval of the other regulative documents two new representatives of KALOUMA HOLDINGS LIMITED will be elected to the Supervisory Board of Kreditprombank", - told Viktor Leonidov.

The Chairman of the Management Board of Kreditprombank has emphasized that in its scale and complexity the process was absolutely innovative one and had no precedents in the domestic banking market. Besides, the restructuring agreement was positively appreciated by the authoritative independent experts of the financial market.

"We are the first bank in Ukraine to have such a broad representation of the largest financial institutions as shareholders. Kreditprombank has received a serious vote of confidence and substantial support from its partners and the Regulator in the process of implementation of major institutional changes. The Bank permanently confirms its adherence to sustainable development, improves the areas of Human Resources, IT, credit and risk management, corporate governance, that allows to strengthen substantially its positions in the banking market. We fulfill in full and in due terms all our obligations to depositors, borrowers, investors; gradually increase the volumes of lending. Kreditprombank has a stable financial position and sufficient liquidity", - underlined Viktor Leonidov.

The manager of Kreditprombank expressed his confidence that the bank’s team will unfailingly meet the expectations put on it by the shareholders, partners, investors, customers and employees.