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Expert commentary

Oschadbank`s Capitalization Increase: Sponsoring Political Games

10.01.2018 CASE Ukraine`s Executive Director Dmytro Boyarchuk commented to the HolosUA media outlet on a situation regarding the Oschadbank`s capitalization increase. According to the economist, this move will not solve the problems of bank customers.

Oschadbank UAH 5.75 billion capitalization increase, which was adopted by the Cabinet, is a way to sponsor stakeholders’ political games using public money. The same clients are considered insolvent by state-owned banks, while they serve their loans in commercial banks.

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‘Capitalization increase is carried out by granting a loan to one or another commercial bank by the state bank. After that, a bank, which has received one or another amount, declares itself as insolvent. After that, the Cabinet of Ministers gets a request an appeal for capitalization increase’ the expert said.