OREANDA-NEWS  On 20 February was announced, that a resolution on participation of the state in recapitalization of national and private banks, adopted during Government session, targets invigoration of the banking sector and protection of the depositors. The First Vice Prime Minister of Ukraine Olexandr Turchynov announced during the briefing.

“In this document the Cabinet of Ministers has refused from the scheme of nationalization of banks, that have some problems,” Olexandr Turchynov explained.

He elucidated the approved decision doesn’t envisage the minimal share holding to possess for the government in order to take part in recapitalization of banks. “When a bank necessitates local aid, the state can take part in recapitalization of even 10% and not only with ordinary but with privileged shares,” the First Vice Premier stressed and underlined, that shareholders of the bank which is to be provided with respective financial assistance will have first-turn right to redeem the stock after stabilization is achieved.

The First Vice Prime Minister emphasized recapitalization of banks is a voluntary procedure, which is to be held on initiative of the banking institutions. “The state will control the process of use of resources by the banks in order to ensure the fund to be directed on invigorating the banks and stabilizing the banking system, returning deposits to the population, prolonging credits and financing the real economic sector,” Olexandr Turchynov explained.