Prominvestbank looks set for nationalization after recapitalization falls through

Prominvestbank could be nationalized by the National Bank of Ukraine, after Ukrainian businessmen Andriy and Sergiy Klyuyev failed to come up with the cash to recapitalize the bank through an additional share issue, according to various Ukrainian news sources. Before beginning nationalization procedures, the NBU council will again explore options for attraction of a new strategic investor. In November, the NBU reached a deal with the Klyuyev brothers in which they acquired a 68% stake in the troubled bank if they meet certain conditions, including recapitalization.