Economy: IMF loan and Banks

As a reminder that Ukraine's banking sector is still on shaky ground, the government bailed out three banks. It injected $1.3 billion into Ukrgazbank, Rodovid and Kyiv banks (via FT Alphaville).

Bloomberg reports that the IMF will increase payments to Ukraine. It expects to release the next tranche in June or July. Tymoshenko and IMF local head comments on both the increase in payments and the bank bail out are below.

“This essential financial support will allow Ukraine to get stronger” at a time of “gradual economic recovery,” Timoshenko said. “This of course can strengthen the hryvnia.”

The government today decided to buy 84.21 percent of VAT Ukrgazbank for 3.2 billion hryvnias ($418 million), 99.97 percent of VAT Rodovid Bank for 2.8 billion hryvnias and 99.93 percent of AK Bank Kiev for 3.563 billion hryvnias, Timoshenko said.

‘Restore Confidence’

The step helps Ukraine “restore confidence in the banking system,” Max Alier, the head of the Washington-based lender’s office in Ukraine, told reporters in Kiev today. The decision is “a very significant step in the right direction,” he said, adding that Ukrainian bank deposits are “coming back.”


at Thursday, June 11, 2009

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