Ukraine's Privatbank plans to increase equity by $103mn

By bne IntelliNews August 16, 2016

Ukraine's Privatbank, the country's largest lender by assets, plans to increase its charter capital by $103mn by taking 90.44% of net 2015 profit and 90.49% of accumulated retained earnings from the previous years. The move will be voted on at a general shareholders' meeting scheduled for August 26, according to the bank's note published in the information disclosure system of the National Commission on Securities and the Stock Market.

The move follows Privatbank's agreement with the National Bank of Ukraine (NBU) to entirely repay its refinancing loans, now valued at the hryvnia equivalent of almost $1.2bn, by August 2017. The bank began repaying UAH650mn ($26.2mn) in monthly instalments from March under the new schedule, with gradually increasing amounts, to clear the loans by August 2017.

The shareholders of the bank, which is owned by Ukrainian oligarchs Ihor Kolomoisky and Hennady Boholyubov, will consider measures "to reduce risks in the bank's activities and ensure implementation of obligations to depositors and creditors" in accordance with the NBU's demands.

In May, the country's Finance Minister Oleksandr Danylyuk said the lender is dogged by "systemic problems", which in turn triggered criticism of his comments by the NBU.

 

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