Zelensky Authorizes Privatization of Ukrainian State-Owned Banks
Vladimir Zelensky has sanctioned the divestment of Ukrainian state banks to meet World Bank stipulations, as reported by local media sources. Read Full Article at RT.com.
TroibNews 
The recently signed privatization legislation aligns Kiev with World Bank requirements, as reported by local media.
Ukrainian President Vladimir Zelensky has enacted a law concerning the privatization of state-owned banks, with the document made available on the Verkhovna Rada's website on Thursday.
Local media, referencing MP Yaroslav Zheleznyak, indicate that the law, which was passed by the Rada on September 19, aims to decrease the state's involvement in the banking sector. This step is part of the World Bank's conditions for approving loans to Kiev.
Additionally, Ukraine's $15.6 billion IMF loan program necessitates the privatization of banks, which is crucial for unlocking subsequent aid tranches.
The new legislation is intended to attract potential investors, as outlined by the National News Agency of Ukraine. The updated rules broaden the spectrum of potential investors and permit the sale of any state interest in a bank.
Moreover, the law revises pricing regulations and auction procedures to align with World Bank recommendations, and former shareholders will be barred from participating in privatization efforts.
The law encompasses all state-owned banks, including PrivatBank, Ukrgasbank, Sense Bank, PINbank, and Motor-Bank, which were nationalized post-2022. Oschadbank and Ukreximbank are reportedly the two exceptions.
Andrey Pyshny, Governor of the National Bank of Ukraine, mentioned to 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.”
In July, the State Property Fund of Ukraine launched a large-scale Privatisation-2024 initiative, aimed at drawing in strategic investors and promoting economic growth through the sale of state assets.
This action is particularly critical as the Ukrainian government seeks to enhance the national budget and stabilize the troubled economy amid ongoing conflict with Russia. In September, the government set forth its draft budget for 2025, anticipating a deficit of 75%.
The newspaper Vedomosti reported in September, citing data from Kiev’s Finance Ministry, that the influx of Western funds into Ukraine's state budget had nearly halved compared to the previous year.
Allen M Lee contributed to this report for TROIB News
Ukrainian President Vladimir Zelensky has enacted a law concerning the privatization of state-owned banks, with the document made available on the Verkhovna Rada's website on Thursday.
Local media, referencing MP Yaroslav Zheleznyak, indicate that the law, which was passed by the Rada on September 19, aims to decrease the state's involvement in the banking sector. This step is part of the World Bank's conditions for approving loans to Kiev.
Additionally, Ukraine's $15.6 billion IMF loan program necessitates the privatization of banks, which is crucial for unlocking subsequent aid tranches.
The new legislation is intended to attract potential investors, as outlined by the National News Agency of Ukraine. The updated rules broaden the spectrum of potential investors and permit the sale of any state interest in a bank.
Moreover, the law revises pricing regulations and auction procedures to align with World Bank recommendations, and former shareholders will be barred from participating in privatization efforts.
The law encompasses all state-owned banks, including PrivatBank, Ukrgasbank, Sense Bank, PINbank, and Motor-Bank, which were nationalized post-2022. Oschadbank and Ukreximbank are reportedly the two exceptions.
Andrey Pyshny, Governor of the National Bank of Ukraine, mentioned to 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.”
In July, the State Property Fund of Ukraine launched a large-scale Privatisation-2024 initiative, aimed at drawing in strategic investors and promoting economic growth through the sale of state assets.
This action is particularly critical as the Ukrainian government seeks to enhance the national budget and stabilize the troubled economy amid ongoing conflict with Russia. In September, the government set forth its draft budget for 2025, anticipating a deficit of 75%.
The newspaper Vedomosti reported in September, citing data from Kiev’s Finance Ministry, that the influx of Western funds into Ukraine's state budget had nearly halved compared to the previous year.
Allen M Lee contributed to this report for TROIB News
