Rozhkova sees potential for sale of state-owned banks before end of war with Russia

The privatization of state-controlled banks, the number of which has increased to five, and the market share in terms of assets to 56% based on the results of January-September 2023, can begin even before the end of the war, First Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova has said.

“If some of the institutional investors, large investors, become interested in buying one of the state-owned banks, then I would not wait for it (the end of the war),” she said on the “We are Ukraine” TV channel.

According to Rozhkova, the National Bank asks the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) to continue work on the privatization of Ukrgasbank and Oschadbank (both based in Kyiv), which began even before the full-scale Russian invasion of Ukraine.

“We ask them [EBRD and IFC] and urge them to continue this work, preparatory work for privatization, so that later this can be done most effectively,” the first deputy governor of the NBU said.

She also said that the NBU is going to conduct an audit of the updated strategies and financial condition of state-owned banks to make further decisions regarding their privatization. In particular, as Rozhkova pointed out, the National Bank, based on the results of checking the strategies and financial condition of state-owned banks, will be able to decide on a recommendation on what is the best way to carry out the privatization of a particular financial institution: full or partial, etc.

The state currently controls five banks: initially state-owned Oschadbank and Ukreximbank, 100% of nationalized PrivatBank and Sense Bank and recapitalized Ukrgasbank. In addition, PINbank awaits its fate, the decision to take it into state revenue under the sanctions law was made in March last year by the High Anti-Corruption Court.


Leave a Reply

Your email address will not be published. Required fields are marked *