EBRD to give loans to Ukrsibbank and Forum Bank

The EBRD announced on its website that it is planning to provide 10-year subordinated loans to increase the tier-II capital of Ukrsibbank – in the amount of USD 100 mln, and Bank Forum (FORM) – USD 80 mln. According to the EBRD, the loans, in addition to tier-I capital injections made by the banks’ main shareholders (PBN Paribas and Commerzbank), will help ensure a sufficient capital cushion to weather the economic downturn in Ukraine. The final decision on the loans to both banks will be considered by the EBRD board on June 30. Alexander Paraschiy: The EBRD’s new loans, together with already granted subordinated debt, will bring the organization’s total investment into the Ukrainian banking system to USD 530 mln. Earlier this year, the EBRD granted subordinated loans to Ukreximbank (USD 250 mln) and Ukrsotsbank (USCB, USD 100 mln) and announced it was considering a EUR 25 mln equity investment in Megabank (MEGA).