AUB: MECHANISM FOR GOVERNMENT RECAPITALIZATION OF BANKS NOT TRANSPARENT

The Association of Ukrainian Banks (AUB) believes that the mechanism for government recapitalization of commercial banks is not transparent.

The association announced this in a statement.

"The council of the AUB notes the absence of clear and comprehensible principles on the basis of which the authorities plan to effect recapitalization of banks," the statement said.

The association expressed support for accelerated recapitalization of viable banks and not banks that will use government funds solely to cover their losses.

The association also opposes the government's initiative on transferring the accounts of state enterprises from commercial banks to state banks and the non-inclusion of healthy commercial banks in implementation of state programs, including pension payment programs.

As Ukrainian News earlier reported, the Cabinet of Ministers approved on April 17 a list of seven banks that will be recapitalized by the government. The are the Nadra bank, Rodovid Bank, the Finances & Credit bank, Ukrhazbank, Ukrprombank, Imexbank, and the Kyiv bank.