Recently, the Verkhovna Rada of Ukraine adopted draft law No. 11474, which simplifies the procedure for the privatization of state-owned banks. This move, which received the support of President Volodymyr Zelenskyi, is aimed at reducing the state's share in the banking system, particularly in the context of the requirements of international financial organizations such as the IMF and the World Bank.
What is changing?
The main changes introduced by the new law include:
- Expanding the range of investors : The state can now consider selling not only 100% of the shares of banks, but also any share that opens up opportunities for different investors.
- Involvement of international donors : International organizations get the opportunity to participate in the selection of financial advisors and in the privatization process, which increases the confidence of investors.
- Simplification of auctions : If only one potential investor participates in the auction, privatization can still take place.
- Using the Prozorro system : The sale of state-owned banks will go through the Prozorro system, which will make the process more transparent and competitive.
Which banks are preparing for sale?
Sens Bank and Ukrgasbank will be prioritized as part of privatization . PrivatBank , Oschadbank and Ukreximbank are also state-owned . This means that partial or full privatization of some of these financial institutions is possible in the near future.
Privatization during the war: realities and forecasts
Against the background of the ongoing war in Ukraine, the issue of bank privatization causes mixed feelings. Experts note that war and economic instability can make it difficult to attract foreign investors. At the same time, according to the head of the National Bank of Ukraine Andrii Pyshnyi, the possibility of partial privatization with the participation of international financial organizations as early as 2025 could become an important step for the recovery of the economy.
Privatization of state-owned banks, on the one hand, can provide new investments and reduce the financial burden on the state, on the other hand, it raises concerns about the possible loss of control over key financial institutions.
