The National Bank of Ukraine has extended the timeframe for the approval of recapitalization plans for the top 10 banks by one month – from 1 January until 1 February 2016, and for the next 10 banks from 1 February until 1 April 2016. On 23 December 2015, the NBU Board issued Resolution No. 923 to this effect.

“The diagnostic exercises for the top 20 banks have been completed and the NBU has issued final capital need estimates to banks.  Based on these capital need estimates, banks are required to develop recapitalization programs or restructuring action plans. We maintain a dialogue with banks and recognize the progress made by banks in raising additional capital. We understand that it is a difficult and long process requiring more efforts. Following consultations with banks, the NBU decided to extend the timeframe for banks to develop and implement recapitalization programs. This decision was agreed with the International Monetary Fund,” said NBU First Deputy Governor Mr Oleksandr Pysaruk.

Given the extended timeframe for the approval of recapitalization plans, this resolution has also amended a schedule to be followed by banks to increase capital and bring their prudential ratios to the required level.   Any bank from among the first 10 banks and the second 10 banks that finds itself with negative equity after the diagnostics will have to bring it to positive territory by 1 April 2016 and by 1 May 2016, respectively. Furthermore, the top 10 banks and the subsequent 10 banks will be required to bring their post-diagnostic capital-asset ratios to at least 5 percent by 1 September and 1 October 2016, respectively.