EBRD to allocate 500mln euros to recapitalize Ukrainian banks

The European Bank for Reconstruction and Development intends to allocate about 500mln euros to recapitalize the Ukrainian banks this year. EBRD President Thomas Mirow stated at a briefing after the meeting with Prime Minister of Ukraine Yulia Tymoshenko.

“We intend to back up Ukraine in this challenging period of the downturn and, first of all, it concerns the financial sector. Today we are carrying on negotiations with a number of banks in Ukraine to help them get the required capital,” Thomas Mirow announced.

According to him, it is early to speak about the exact sum that will be allocated for recapitalization, or to call the list of banks that will be granted with this aid because the talks still under way, “The sum is expected to be large – about 500mln euros that we intend to grant as recapitalization”.   

Thomas Mirow informed that the EBRD is negotiating “directly” with the Ukrainian banks in this issue, “It concerns both private and state sector but the private sector is above all”.

According to him, the recapitalization of banks is not an end in itself, the main thing – to take such steps which can revive the banks’ activity and the economy as a whole.