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Report: 2 Ukrainian lenders to get 6.5B hryvnia capital boost from state budget

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Report: 2 Ukrainian lenders to get 6.5B hryvnia capital boost from state budget

Ukrainian lenders PJSC State Savings Bank of Ukraine and JSC The State Export-Import Bank of Ukraine are set to get a 6.5 billion hryvnia capital boost from the state budget, reported Feb. 1.

The Ukrainian government wants to recapitalize the lenders, known as Oschadbank and Ukreximbank, by 3.5 billion hryvnia and 3 billion hryvnia, respectively, by issuing state bonds that will be exchanged for new shares in the banks.

Ukraine plans to spend a sum close to 1% of its GDP in 2017 to bolster the capital of the two state lenders and provide support to the country's deposit guarantee fund, the report noted.

As of Feb. 1, US$1 was equivalent to 26.93 Ukrainian hryvnia.