OREANDA-NEWS. On 11 March 2009 Ukrgasbank < UGZB UZ U/R > announced that it will consider the need in the government's financing at its EGM, expected to take place on 13 March 2009. Additionally, the bank will approve the plan on its financial recovery.

Millennium Capital sees the news to be NEGATIVE for UGZB, since the intention to attract the funds of the government seems about bank’s failure to attract the funds for the corporate investor. At the same time, considering limited amount of the NBU’s free international reserves, Millennium Capital expects the expected government support will be in the form of the bank’s recapitalization. This, according to the new recapitalization rules, means the purchase of the bank’s control stake by the government.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.