Media: Ukrainian subsidiary of VEB need support in the amount of $650 million

Media: Ukrainian subsidiary of VEB need support in the amount of $650 million


Problems arose for Prominvestbank. At year-end expected loss of the Bank in 765 million dollars. While the Bank conducted a capital increase, executed his plan of recapitalization for 2016.

MOSCOW, 29 Mar. The solution to the liquidity problems and the capital of Prominvestbank, the Ukrainian subsidiary of Vnesheconombank, will require 650 million dollars, wrote on Tuesday the newspaper “Vedomosti”.

According to sources close to the Bank and the Corporation, the February recapitalization of $ 800 million may not be sufficient for the salvation of Prominvestbank. He needs recapitalization in the amount of USD 100 million until September 1 and $ 100 million in 2017, according to the interlocutors of publication, and taking into account the need of additional reserves for assets in the Donetsk and Lugansk regions up to 100% and up to 50% in the continental part of Ukraine might increase to 650 million dollars.

As a result, the year is expected a loss of Prominvestbank in 765 million dollars. The previous two years, the Bank also finished with losses.

“As for the current situation in the Bank, Prominvestbank conducted a capital increase, executed his plan of recapitalization for 2016”, – stated in the NBU’s response to the request of the newspaper. The parent Bank provides ongoing support liquidity of the Bank, reported the NBU.

After the February capital increase is planned to appeal to the national Bank on the revocation of the notification on the possibility of recognition of the Bank insolvent, saying the two sides “Vedomosti”. Stop the activities of Prominvestbank and its subsequent liquidation can lead to the loss of all funds invested by VEB, they stress.

The issue of Prominvestbank additional funds will be submitted to the meeting of VEB’s Supervisory Board, knows one of the interlocutors of the newspaper. The next meeting will be held today, but such question in the agenda, he says.