Ukraine seeks to avoid taking on external debt of recapitalized banks

Acting Finance Minister Ihor Umanskiy said yesterday that Ukraine is seeking ways to avoid taking on the debt of recapitalized and nationalized banks. Umanskiy said the government is currently holding negotiations with creditors in order to request they not use their right to accelerate the debt repayment following the change in control. The Ukrainian government is preparing six banks for recapitalization, by taking at least 60%+1 stakes in the lenders. Alexander Paraschiy: Negotiations initiated by the state to avoid early repayment of external banks’ debts could postpone the process of recapitalization for some banks (Nadra, Ukrgazbank, Finance & Credit) by an additional 2-3 months compared to the initial schedule of one month. Still, we believe the state will succeed in negotiations on most of its positions.