Ukrsotsbank Chairman Borys Tymonkin believes that there is no alternative to bicurrency system in the foreseeable future

“I still do not see and in the foreseeable future, probably no one will show me alternative to bicurrency system. We established it historically: the dollar is almost in free circulation with the hryvnia. Gradually we are getting used to the euro but roughly speaking, in circulation there is one currency fixed, the other – Ukrainian hryvnia. Moreover, there is almost half-and-half ratio between them. The same in cash and in the banking system – both in assets and in liabilities” – the banker said.

The banker noted that in the near time banks will not have other long resource than that received through borrowing from abroad.

“In bicurrency system we should seek compromises. For the moment they have implemented restrictions, prohibited to grant loans in foreign currency to individuals. But I see no other long resource, besides that we get from abroad for the next 10—20 years. I do not know what should happen in a country to get a serious source of volume and a long stable resource”, – Borys Tymonkin said.

"We must understand that in the country there still is a lot of currency that belongs to our compatriots – in cash, in banks, in offshore. Significant part of the assets of residents of Ukraine is in dollars and euros. This is – a real financial asset, so why not to use it?"– the Chairman said.

Note

JSCB Ukrsotsbank was established in September 1990. At present, it is among the largest banks in Ukraine. The branch network (without the HQ) of the Bank comprises 447 offices — 440 branches and 7 affiliates. The number of employees — 9 500.

Financial summary, as of 1 October, 2009:

• loan portfolio – UAH 41.480 billion 
• net assets — UAH 44.273 billion 
• funds of legal entities deposited on thrift and current accounts — UAH 4.857 bln.
• funds of individuals — UAH 6.724 billion
• Bank capital — UAH 5.768 billion
• net profit — UAH 85 million

On 23rd of January 2008, UniCredit Group finalized the acquisition of 94,2% total shareholders capital of Ukrsotsbank from the group of investors that were represented by international consulting company EastOne (shareholders’ saler) through Bank Austria which is responsible for commercial banking activity in CEE.