Bank recapitalization has become a tool of pumping money into the campaign fund of Ukraine's incumbent Prime Minister Yulia Tymoshenko, said Serhiy Lyovochkin, Party of Regions MP and head of the National Bank in the opposition government, Kyiv Post reported.

"Tymoshenko is "pumping" funds into the banks of oligarchs who are funding her and her political force. The recapitalization has become the government's tool of pumping public money into Tymoshenko's campaign fund. And since the campaign has not really started yet, one can only imagine how the current government is going to rob the state this fall, disguised by slogans about welfare and justice," the MP was quoted as saying by his press office.

The Cabinet head is deliberately worsening the situation in the country's banking system, Lyovochkin said.

"Tymoshenko's targeted steps that we are seeing now are a well-planned sabotage... Her failed "gas" deals will lead to the bankruptcy of state banks that are forced to lend money for these shady deals," the press release said.

It was reported that so far only three banks, Ukrgasbank, Bank Kyiv and Rodovid Bank, have received a state support. To recapitalize them the government has issued UAH 9.47 billion in internal state loan bonds which will be bought out by the National Bank.

All in all, UAH 44 billion will be allocated from the Ukrainian national budget to recapitalize banks.

The official exchange rate on August 3 is UAH 7.6991 /$1.


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