The Ukrainian government has proposed handing over the assets and liabilities of commercial banks that require rehabilitation to state-owned banks and then possibly liquidating the troubled financial institutions, Prime Minister Yulia Tymoshenko said at a press conference in Kyiv on Wednesday, according to Kyiv Post.

"The government is prepared to provide the services of state-owned banks so they can be given the assets and liabilities [of troubled banks] and the banks would be liquidated," she said.

This proposal is contained in an open letter that was approved at a government meeting on Wednesday, she said.

Tymoshenko said the Cabinet is in favor replacing temporary administrators at these banks and already submitted the corresponding nominations to the National Bank "several weeks ago."

For now, these proposals are not being considered and the government has only suggested taking on the liabilities of troubled banks, she said.

Temporary administrators were introduced at 16 banks in early August.

Ukraine currently has two state-owned banks - Oschadbank and Ukreximbank.


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