Gov’t should reduce presence in banking system to 25% - finance ministry

The issue was discussed during a working meeting on progress in the sale of the state-owned share of Ukrgasbank, the Ministry’s press service reported.

"The main goal of the Ministry of Finance, as a shareholder, is to reduce the state's share in the banking system to below 25% in 2025. Partnership with IFC and the transformation processes launched by Ukrgasbank to fulfill its strategic objectives significantly improve its attractiveness for further privatization. The sale of Ukrgasbank should become the government’s success story and a major example for all investors in terms of the attractiveness of Ukraine’s banking market,” said Deputy Minister of Finance for European Integration Yuriy Drahanchuk.

Drahanchuk noted the effectiveness of cooperation with IFC, including n the procedure for hiring a financial advisor for the bank sale. It should be as transparent as possible and in line with legislation. The next step is to select the best option to sell the financial institution.

The participants in the meeting discussed the Ukrgasbank privatization roadmap implementation status. Among other state-owned banks, Ukrgasbank is the one most prepared for sale. This is evidenced by its operational efficiency and low level of distressed assets.

The successful completion of Ukrgasbank’s privatization process will send a strong signal to all investors that the country is fulfilling its obligations to reform its banking sector and build a sustainable banking model based on best international practices.

As Ukrinform reported, the International Finance Corporation (IFC) on January 25 signed a EUR 30 million loan agreement, providing for the entry into the authorized capital of the state-owned Ukrgasbank.

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