The government’s resolution to recapitalize nationalized PrivatBank for the amount of UAH 9.8 billion by the issue of 15-year government domestic loan bonds with the indexed value (with reference to the U.S. dollar exchange rate), adopted on February 22, was executed on February 24, according to the National Bank of Ukraine (NBU).
According to the report, the volume of government domestic loan bonds in circulation increased by UAH 9.564 billion.
At the same time, the portfolio of government bonds owned by the banks rose by UAH 9.483 billion, resident non-banks by UAH 95 million, while that of the National Bank remained unchanged.
Some difference in numbers could be explained either with the redemption of previously issued bonds or the issuance of government domestic loan bonds at slightly lower volumes than stated in the decision.
The Ministry of Finance and the Cabinet of Ministers, after the decision of February 22 had been made, stated original capitalization of PrivatBank for UAH 116.8 billion was foreseen, however, the bank’s charter capital was supplemented by UAH 107 billion.
“This UAH 9.8 billion is the rest of the amount not included in the bank’s capital in 2016,” the government said. (Interfax/Business World Magazine)
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