F&C Bank shareholders approve stabilization plan

Finance & Credit Bank shareholders, at an AGM on August 3, approved a stabilization plan that envisions increasing the bank’s charter fund in two stages in August-September and October-November. The lender is targeting a 12.5% capital adequacy ratio by end-2009. Finance & Credit said its strategy would focus on reducing and stabilizing its loan portfolio and meeting foreign debt obligations. The National Bank of Ukraine has already signed off on Finance & Credit’s stabilization plan. In other news, Finance & Credit Bank announced today that in the month of July it repaid USD 5.7 mln in foreign debt. Finance & Credit Bank was Ukraine’s #14 largest bank by assets, according to NBU statistics as of July 1. Andrii Parkhomenko: In our view, the decision shows the bank’s owners intend to support the bank without falling back on state recapitalization. We do not see any material impact of the news on the bank’s Eurobond quotations.