Zelensky approves sell-off of Ukrainian state banks
The privatization legislation brings Kiev in line with World Bank requirements, according to local media reports
According to local media, citing MP Yaroslav Zheleznyak, the legislation, adopted by the Rada on September 19, is aimed at reducing the state’s presence in the banking sector. This is one of the requirements of the World Bank and is a mandatory condition for providing loans to Kiev.
Ukraine’s $15.6 billion IMF loan program also calls for bank privatizations and these will be key to unlocking new tranches of aid.
The new law is reportedly also designed to attract potential investors. According to the National News Agency of Ukraine, the new rules expand the range of potential investors and allows for the sale of any state share (previously just 100% of the share) in a bank.
They also update the regulations for setting the price and conducting auctions in accordance with the World Bank’s recommendations. The participation of former shareholders in privatization will also be prohibited.
The law applies to all state-owned banks, including PrivatBank and Ukrgasbank, as well as Sense Bank, PINbank, and Motor-Bank, which were nationalized after 2022. Oschadbank and Ukreximbank are reportedly the two exceptions.
National Bank of Ukraine (NBU) Governor Andrey Pyshny told local media on Thursday that Sense Bank and Ukrgasbank are “two priority banks for starting the privatization process involving a consultant, who will have to choose the best options.”
https://www.rt.com/news/605867-ukraine-banks-privatization-economy/