Prominvestbank shareholders voted last week to increase capital by issuing additional shares.
Vladimir Minin, a member of the bank’s Supervisory Board, said that when the economy is sluggish, there’s a need for increased capital.
“The economy is going through difficult times, and the quality of service credit deteriorates,” Minin said. “The question of capitalization (arises) — you must create the necessary reserves … to neutralize the impact of the crisis processes.”
The increase in capital aims to curb depreciation of the national currency in Ukraine, the hryvnia. As a result of the vote, the amount of shares in the bank will increase by 57.2 percent, or $311 million, for a total of $853 million.
Prominvestbank is considered a universal commercial bank; it is also one of the leading banks in the country. It serves both corporate and individual clients, with many clients in the mining and manufacturing industries.