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10:20
FINANCE MINISTRY PREFERS MOVEMENT OF UKRPROMBANK INDIVIDUALS' DEPOSITS TO OSCHADBANK TO UKRPROMBANK CAPITALIZATION

Kyiv, July 29 (Interfax-Ukraine) – Ukraine's Finance Ministry has said that it is inexpedient to capitalize Kyiv-based Ukrprombank using state funds and agrees with the National Bank of Ukraine (NBU) on the movement of deposits of individuals in Ukrprombank to the State Savings Bank of Ukraine (Oschadbank), the acting finance minister, Ihor Umansky, told the press on Wednesday.

"We've studied the situation at Ukrprombank: its balance sheets, assets, liabilities, and we believe that today it's more appropriate to settle social issue – to safeguard depositors with the help of the state. However, it makes no sense for the state to cover the losses of private business in full using taxpayers' money," Umansky said.

He said that the NBU's proposal on the movement of individuals' deposits to Oschadbank was dictated by the ministry's position.

"The question is the following: whether it would be done via Oschadbank or another bank. In the present conditions the proposal is logical," the minister said.

Ukrprombank was set up in 1989. As of July 1, 2009, its key shareholders were ABS (34%), Naftovy Bank Ltd. (32%) and Ukrpromservice (34%).

According to the National Bank of Ukraine, the bank ranked 18th in terms of total assets (UAH 9.83 billion) among the 182 banks operating in Ukraine as of April 1, 2009.

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