The National Bank of Ukraine (NBU) has suggested that Hr 28 billion should be allocated from Ukraine's national budget in 2015 to recapitalize and nationalize banks.
The suggested figure was announced at a meeting of NBU senior officials with representatives of large Ukrainian banks on Dec.22, a source in the financial sector told Interfax-Ukraine.
“The Central Bank has earmarked Hr 28 billion in the budget for the recapitalization of banks, including possible [bank] nationalization, while over Hr 2.5 billion has been allocated to replenish the Deposit Guarantee Fund.
As was reported, the draft national budget for 2015 foresees that at least Hr 30 billion should be funneled to the NBU from budget receipts no later than on May 11, 2015.
The source also told Interfax-Ukraine that bankers at the meeting had exchanged opinions about forex rate trends: they expect that the market forex rate will be close to Hr 18 per U.S. dollar soon as this is the rate which exporters are ready to sell foreign currency at.
NBU Governor Valeriya Gontareva noted that the forex market, including the gray and black markets, are calming, but she acknowledged that exporters would remain to be ‘trendsetters’ on the forex market: the balance of trade in 2015 will see a deficit.
Bankers also discussed the possibility of restructuring credits denominated in foreign currency: on which neither the regulator nor commercial banks currently agree.
NBU First Vice Governor Oleksandr Pysaruk in turn noted strong pressure from public organizations on the central bank, which is ready to compromise.
“Banks are suggested to go for a 50 percent discount for foreign currency loans when the loans are converted to hryvnia. Most of banks have expressed the opinion that the figure shouldn’t be higher than 30 percent, and proposed that the formula of [former Finance Minister Viktor] Pynzenyk, when losses are split into three equal parts between the state, the borrower and the banking system,” the source said.
The regulator also informed banks that it would ease banking requirements for a certain period, with the aim to balance the banking system, taking into account Crimea and Donbas related losses in loan portfolios, with the scenario having been coordinated with the International Monetary Fund.
