Ukrsotsbank Covers Its Capital Gap.

Ukrsotsbank (USCB: BUY), Ukraine’s fifth-largest bank in terms of assets, signed an agreement with its majority shareholder, Ferrotrade International on drawing USD 19.3 mln loan on subordinated debt terms. The debt will be raised for 5 years at 11% and will help the bank cover its capital requirements, which became a problem after a planned share capital increase was blocked by lawsuits brought by minority shareholders. Ukrsotsbank had been forced to suspend consumer lending in June because of the problem. Concorde Capital: We see the lawsuits as a minor problem which will not significantly hurt the bank’s performance or derail the agreed sale of the bank by local businessman Viktor Pinchuk to Italy’s Banca Intesa.