NBU recommends 50/50 recapitalization of Nadra by state & investor

The board of the National Bank of Ukraine recommended last week that the Cabinet of Ministers take over and recapitalize Nadra Bank on a 50/50 basis with a private investor. Ukrainian businessman Dmitriy Firtash has expressed an interest in recapitalizing the bank, but according to daily Kommersant was not ready to increase the bank’s capital himself and requested the government’s participation. The NBU estimates that Nadra requires an additional UAH 10 bln. Nadra Bank is Ukraine’s #11 largest bank, with UAH 24.9 bln in assets, according to the NBU. Nadra is the last large troubled Ukrainian bank whose fate is uncertain; Rodovid Bank, Ukrgazbank and Bank Kyiv were all nationalized and recapitalized by the government last year without the participation of private investors, while Ukrprombank is effectively being liquidated now.