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11:56
UKRPROMBANK DEPOSITORS' FUNDS TO BE TRANSFERRED TO OSCHADBANK, RODOVID BANK, FINANCE MINISTRY SAYS

Kyiv, August 5 (Interfax-Ukraine) - The funds of Ukrprombank depositors could be transferred to Oschadbank or Rodovid Bank (all based in Kyiv), Acting Finance Minister Ihor Umansky told journalists on Wednesday.

"We will take assets and a corresponding amount of liabilities from Ukrprombank and transfer them to another bank," he said.

Umansky said that Rodovid Bank is being considered for this purpose.

Earlier, the Finance Ministry said that it was unreasonable to perform the additional capitalization of Ukrprombank using state funds and said it supported a National Bank of Ukraine proposal to transfer individual depositors' funds in the bank to the state-owned Oschadbank.

"We've studied the situation at Ukrprombank: its balance, assets, liabilities. We consider it is [better] to solve a social problem today: to provide its depositors with state protection. But the salvation of private business using tax payers' money, in particular, the full coverage of losses, makes no sense for the state," he said.

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

The NBU introduced a temporary administration at Ukrprombank on January 21, 2009.

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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