Page 44 - bne IntelliNews Country Report: Ukraine Dec17

8.1.5 Bank news
Ukraine's state-owned Oschadbank has secured a UAH3bn ($111.5mn) refinancing loan from the National Bank of Ukraine ( NBU) for 84 days at 15.5% per annum. The loan is a standard short-term liquidity tool for Ukrainian banks. According to Oschadbank's media office, the credit was raised to refinancing lending thanks to the large volume of transactions crediting large corporate clients of the real economic sector. The lender has used government domestic loan bonds as collateral, according Interfax news agency. "Despite the fact that Oschadbank remains one of the leaders in the growth of the term resource base in the national currency, which for the first nine months of this year increased by UAH7.7bn, the volume of hryvnia liquidity is insufficient to fully cover the needs of clients for lending," the bank's media office added.
The refinancing is "fundamentally different" from the crisis funding banks attracted in large amounts earlier during the 2014-2015 crisis, the bank's media office underlined. "It is about diversifying the sources of financing. Taking into account the unbiased trend to increase interest rates on the market, the bank uses a market-based approach to the management of its liquidity, while maintaining efficiency."
Hong Kong-based Madison Pacific Trust Limited, a new trustee for $375mn loan participation notes (LPN) of Ukraine's PrivatBank, nationalised in December, has demanded the repayment of the bank’s debt , according to a note published by securities issuer UK SPV Credit Finance Plc on the website of the London Stock Exchange (LSE). PrivatBank has $175mn LPN due on February 28, 2018 and another $200mn LPN due on January 23, 2018. Investors in these notes were effectively wiped out by the nationalisation of the bank at the end of last year. Some of them are not happy with this result and are seeking compensation through the courts. The Madison Pacific Trust trustee sent an acceleration of repayment notice to PrivatBank on November 2. The trust will update noteholders on any developments subsequent to the issue of the acceleration notice.
Olena Bogoliubova, the former wife of Hennadiy Bogoliubov, one of the former owners of Ukraine's PrivatBank, has won a case in a first-tier court against the bail-in of her UAH500mn ($20mn) deposits in the bank , according to local media. The court ruling followed that of Ukrainian
44 UKRAINE Country Report December 2017 www.intellinews.com