OREANDA-NEWS. November 12, 2010. PRAVEX-BANK keeps augmenting its capital, which will be performed by two following stages, reported the press-centre of PRAVEX-BANK:

Authorized capital decrease is performed in the first stage for previous years losses covering. The amount released in such a way from the authorized capital by means of shares par value decrease is directed for total provisions creation.

The aforesaid decision was taken by Intesa Sanpaolo S.p.A. as the first step of recapitalization stipulating immediately after completion of procedure of the authorized capital decrease the second stage — further capital increase by UAH 298 mln.

 Thus, PRAVEX-BANK capitalization is not decreased but vice versa increased and brought in compliance with the article 32 of the Law of Ukraine "On banks and banking activity", where stated that Bank's capital can not be lower than authorized capital.

"In any case regulatory capital/solvency adequacy ratio (H2) of PRAVEX-BANK as of the end of September is 19,09 %, that is almost the double comparing to set requirements. Moreover we would like to remind that PRAVEX-BANK passed diagnostic stress test without problems therefore the additional capital that will be injected is just an action aiming to further strengthen the bank", — commented Sergii Naumov, Chairman of the Management Board of PRAVEX-BANK.