You're reading: Government capitalizes PrivatBank with bonds worth Hr 9 billion

The government’s resolution to recapitalize nationalized PrivatBank for the amount of Hr 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 Feb. 22, was executed on Feb. 24, according to the National Bank of Ukraine (NBU).

According to the report, the volume of government domestic loan bonds in circulation increased by Hr 9.564 billion.

At the same time, the portfolio of government bonds owned by the banks rose by Hr 9.483 billion, resident non-banks by Hr 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 Feb. 22 had been made, stated originally capitalization of PrivatBank for Hr 116.8 billion was foreseen, however, the bank’s charter capital was supplemented by Hr 107 billion.

“This Hr 9.8 billion is the rest of the amount not included in the bank’s capital in 2016,” the government said.