Bank Kyiv, Rodovid Bank & Ukrgazbank approved for nationalization

Yesterday the Cabinet of Ministers agreed to allocate UAH 9.57 bln to recapitalize Bank Kyiv, Rodovid Bank (RODB) and Ukrgazbank (UGZB) in exchange for stakes in the lenders. According to the approved order, Bank Kyiv will receive UAH 3.56 bln in exchange for a 99.93% stake, Rodovid will get UAH 2.81 bln for a 99.97% stake, and Ukrgazbank will get UAH 3.2 bln for an 84.21% stake. Prime Minister Yulia Tymoshenko said that the formal nationalization documents would be ready by the end of the week and government-appointed managers would start work already next week. Alexander Paraschiy: Recapitalization by the state would mean current minorities’ stake in RODB will be diluted by 3,333 times, and in UGZB by 6.3 times.