Wednesday, October 29, 2008

Transport Ministry to acquire controlling stake at one of Ukrainian banks

Ukrainian Transport and Communications Minister Yosyp Vinsky has said that his ministry is planning to acquire a controlling stake at one of Ukrainian banks in connection with the need to secure the ministry's accounts under conditions of the financial crisis.

He expressed confidence that the funds of UkrZaliznytsia, UkrAvtoDor, airports, post office and ports would be safe at a bank owned by the ministry.

Deputy Transport Minister Kateryna Fomenko said while explaining the ministry's position that "the accounts of the ministry's enterprises at tens of banks are currently jeopardized. For instance, we have our accounts worth over UAH 50 million (USD 1 / UAH 5.35) 'frozen' in PromInvestBank, and it is not a single example," she said.

Bankers are skeptical about the minister's idea, as they believe that spending on the purchase and development of the bank will be greater than possible benefits.