KIEV, July 12 – Moody's Investors Service has supported a recommendation by the National Bank of Ukraine, based on the results of financial stress tests, that Ukrainian banks conduct additional capitalization worth UAH 40 billion.

"On July 2, the NBU published the results of stress tests of Ukrainian banks and recommended that they increase their regulatory capital by UAH 40 billion (approximately $5 billion). We consider the recommendation by Ukraine’s banking regulator to be credit positive because we expect it will lead to improved capitalization of the banking system and increase its ability to absorb credit losses," the statement reads.

"We view the NBU's expectation that UAH 10 billion in capital can be raised by releasing previously created loan-loss reserves as realistic.