• 21/07/2024 03:57

Ukraine is preparing to sell two state-owned banks – Memorandum with the IMF

Two state banks, Sense Bank and Ukrgasbank, are preparing for sale. An internationally recognized financial advisor will be appointed by the end of May to propose a comprehensive action plan for the sale of financial institutions. This is stated in the updated Memorandum on the IMF.

Ukraine is preparing to sell two state-owned banks — Memorandum with the IMF

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It is noted that, in preparation for the privatization of state-owned banks, the Ministry of Finance, in consultation with the NBU and international financial organizations, has been reviewing and updating the draft law on the privatization of state-owned banks since 2012. The bill will be submitted to parliament before the end of March 2024.

“The authorities also pledged that all systemic banks with overwhelming state ownership will fall under the responsibility of the Ministry of Finance, and that any non-systemic banks owned by the state will not be recapitalized at the expense of fiscal resources and will be transferred to the Deposit Guarantee Fund for settlement in case of violation prudential requirements (modified permanent structural beacon),” says the Memorandum.

Remember

The Ministry of Finance wrote that Prime Minister of Ukraine Denis Shmygal handed over the plan for the Ukraine Facility to the President of the European Commission Ursula von der Leyen during a meeting in Brussels. One of the points of the plan is to reduce the number of state-owned banks.

Share of state-owned banks in the market

According to the National Bank, 62 banks are currently operating in Ukraine. 63% of the total profit of all banks comes from 5 state-owned banks.

According to Opendatabot, the largest state-owned banks in Ukraine are Privatbank, Ukreximbank, Oschadbank, Sense Bank and Ukrgasbank.

Ukraine is preparing for sale two state-owned banks — Memorandum with the IMF

Market distribution between state banks

Recall that in January information appeared that Ukrgasbank and Sense Bank are ready to buy foreign investors. Deputy Minister of Finance Yuri Draganchuk said that the government is preparing them for sale.

minfin.com.ua

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