Banks are returning to equilibrium

authorities continue to work with problem banks. Yesterday, the Ministry of Finance has received a proposal on bank recapitalization Ukrprombank and bank Nadra and appointed a new top management in РодовіÐ´ Bank and Bank Kiev. In turn, the National Bank of Ukraine approved the appointments, but also brought the curator of Finance and Credit.

According to Acting Minister of Finance Igor Umansky, the presentation of the NBU to Ukrprombank and recapitalization of the bank Nadra was and is being considered. But there are moments of more complicated than had been with previous recapitalizations of banks, - he said.

Nevertheless, the position of the Ministry of Finance in respect of these two banks remains: are not taken into account and clearly explored the possibility of settlement payments to the debt of these financial institutions, especially foreign debt, the final decision will not be accepted. However, as noted by Umansky, the Ministry of Finance is understood that the bank Nadra works and has the prospect to be rekapitalizovannym. Regarding Ukrprombank, the Ministry of Finance is likely to explore the possibility of settlement of obligations to the bank's depositors, rather than its recapitalizations.

In turn, the National Bank, according to Director of the Department of Foreign Economic Relations of the National Bank of Ukraine Sergey Kruglik, proposes to consider the possibility of Oschadbank obligations on individuals' funds Ukrprombank in the case of a negative decision on the recapitalization.

Also yesterday, the National Bank of Ukraine has approved a temporary administrator РодовіÐ´ Bank Sergei Scherbina for the post of chairman of the board, and Igor Frantskevich - for the post of chairman of the bank Kiev. Interim Authority in the two banks continue to work. Adoption of Alexander Morozov for the post of chairman of the UGB is not held on Wednesday due to technical reasons, it is expected at any moment.

Bank got rid of state control. Curator - Deputy head of the National Bank of Ukraine in Kiev and Kiev region Ol'ga Galyant - had been withdrawn from the bank. Such a decision is due to the regulator in particular the fact that even in June, Finance and Credit withdrawn the application for recapitalization.

However, a rapid decision on the restructuring of external debt (Eurobonds due in 2010 at $ 100 million) still looks doubtful. Unlikely that the Bankwill be able to restructure its debt under such conditions. You could consider the provision of government guarantees or increase the coupon. Guided by a new bid would be the rate of recent restructure securities Alpha Bank - 13% , - says analyst IR Socrates Mikhail Salnikov. However, the agreement of creditors could significantly affect the decision of the State to join the state in Ukrprombank bank Nadra.

At the same time, the NBU in the recapitalization program has already bought out the Ukrgasbank internal state loan bonds worth about 1 bln. made in the charter capital of the Government. Monetization OVDP capital РодовіÐ´ Bank has been delayed. By РодовіÐ´ Bank, we do not hurry to do so for one reason: they have not yet resolved the issues of domestic obligations, - explained Mr. Umansky.

experts positively assess the situation. The three banks for recapitalization by the state - this is great progress in addressing the issue of problem banks and the revival of confidence in the banking system. It is not even the very survival of these banks (the State will still not be able to save all), but the mere fact that the State has shown the ability to operate and solve problems, - says Yevgeny Grebenyuk, senior analyst of IC Troika Dialog Ukraine.

This economist Concorde Capital investment company Andrey Parkhomenko considers the main trends in the banking system, which in the first place today to draw attention, the restructuring of foreign debt and the publication of financial statements for the first half of 2009

We have seen that, Alfa Bank successfully restructure its debt for Eurobonds. The deal could provide some guidance to the industry, and we are likely to see more restructuring liabilities of large banks in the year - he believes .

However, some market participants, the actions of the State could be more active. Social tensions and mistrust of the system - these are the consequences of delaying the process of joining the state in kombanki, - said Head of analytical department Cow TASK-Invest Andrew Shevchishin. Therefore, the banking system remains a prerequisite for a new cycle of crisis.

Ol'ga Galitskaya

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