NBU: Banks Arma, National Credit could be sold to private investors

Vasily Pasichnyk, director of banking supervision and regulation at the National Bank of Ukraine, said yesterday in an interview with the publication Biznes that banks Arma and National Credit could be sold to private Ukraine-based investors.  According to Pasichnyk, the private shareholders would provide financing to recapitalize the banks, with the NBU supplying support for refinancing. Pasichnyk also said that two other unnamed banks could receive private funds for recapitalization. Arma has been under the NBU’s temporary administration since April 17, 2009, and National Credit – since December 19, 2008. The banks were respectively Ukraine’s #113 and #123 largest banks, based on NBU stats as of April 1. Andrii Parkhomenko: The current state budget provides for UAH 44 bln to be directed for banking recapitalization. As almost all of these funds are expected to be attracted via placing government bonds, the attraction of private money for recapitalization purposes will alleviate pressure on the budget, as well as curb the rise in public debt.