OREANDA-NEWS. On 11 March 2009 was announced, that the Private Deposits Guarantee Fund made Bank Nadra < NADR UZ N/R >, bank Prychornomoria, Odesa bank, bank National Credit and Financial Union Bank temporary participants. This means that the deposits put up by the population to these banks after the 4 March 2008 will not be guaranteed by the Fund. The decision was related to the deterioration in the performance of the above banks and delay in payments of their subscriptions to the Fund. Note that the former four banks are under the temporary administration of the NBU, while the Financial Union Bank has some legislative issues with the Fund.

The temporary participant status may imply the full stop of the retail inflow for its owner. Still, Millennium Capital sees the news to be NEUTRAL for the banks under the temporary administration, since in most of cases the population stopped to put up deposits to these banks due to the imposition of prematurely deposits withdrawal. At the same time the Financial Union Bank will not suffer significant problems from the decision, since it does not rely on the retail deposits taking only 10% in its retail portfolio.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.