IMF funds to be used for repayment of foreign debt of nationalized banks?

A local daily Ekonomicheskye Izvestiya wrote today, citing a source from the Ministry of Finance, that a portion of the second tranche of the IMF loan could be used for repayment of foreign debt of the banks that will be recapitalized by the state. The Ministry of Finance received USD 1.4 bln out of the USD 2.8 bln second tranche of the IMF loan. The source says that aggregate external debt of Nadra Bank (NADR), Rodovid Bank (RODB), Ukrprombank, Ukrgazbank (UGZB), and Finance & Credit Bank (all on the list for recapitalization) amounts to about USD 1.4 bln in 2009. Alexander Paraschiy: The news is positive for the holders of LPNs of Nadra Bank and Finance & Credit Bank maturing in 2010.