KYIV, Sept 26 – The National Bank of Ukraine has decided to appoint a temporary administration to run the Ukraina Bank, the National Bank of Ukraine’s press service said, Ukrainian News reported.
Viktor Topolov, who has previously worked with several banks, was appointed head of the temporary administration.
The temporary administration will run the bank for one year until September 25, 2001.
According to the NBU decision, the powers of the board of directors of Ukraina Bank have been suspended until September 25, 2001, although the heads of the bank’s regional departments will continue to perform their duties.
The NBU’s press service said that the appointment of the temporary administration was aimed at stabilizing the bank’s finances and improving its management.
After studying the actual situation at Ukraina Bank, the temporary administration must make a decision on the bad loans that the bank issued and on other assets which have not been recovered.
“This is the first step that the government and the National Bank of Ukraine are taking to improve the operations of Ukraina Bank,” the press service said in its statement.
Making improvements in the National Bank’s operations was one of the key issues during talks between the Ukrainian government and an International Monetary Fund mission, which ended last week, the report said.
The NBU’s decision to appoint the temporary administration to run Ukraina Bank was the result of IMF concerns with the potential loss of one of Ukraine’s largest commercial banks, according to the report.
