The transparent privatization of Ukrgasbank and Sens Bank could be a key factor in bringing international financial organizations back to investing in Ukraine’s banking sector. This was stated by the head of the International Finance Corporation (IFC) office in Ukraine, Olena Voloshyna, during the Forbes Banker forum.
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IFC’s Position on the Ukrainian Banking Sector
Olena Voloshyna emphasized that the IFC views Ukrainian banks as a primary channel for financing small and medium-sized enterprises. Currently, the corporation supports this sector through two instruments: financing export-import operations and a risk-sharing mechanism that is already actively functioning in cooperation with five banks and one leasing company.
At the same time, Voloshyna noted that direct investments in bank capital are currently associated with increased caution from international financial organizations, as it is difficult to predict the conditions for exiting such investments during a state of war.
Privatization as an Incentive for Investors
According to Voloshyna, transparent privatization, along with the subsequent implementation of corporate governance reforms, could serve as a powerful incentive to restore investor interest in Ukraine’s banking system. She recalled the positive experience of international financial organizations in entering the capital of Ukrainian banks, particularly the partnership between the IFC, EBRD, and the Dutch bank MeesPierson, which previously owned 50% of the shares in PUMB.
“Currently, investors have become significantly more cautious about such investments due to the difficulty of predicting exits from them,” stated the head of the International Finance Corporation (IFC) office in Ukraine, Olena Voloshyna, during the Forbes Banker forum.
The need for privatization is driven not only by attracting foreign investments but also by fulfilling Ukraine’s obligations under the Extended Fund Facility program with the IMF. During the wartime period, the state’s share in the banking sector has significantly increased and currently stands at 54.4%. Today, the state controls seven banks.