Ukraine wants to appoint a consultant for sale of Ukrgasbank and Sense Bank by Oct
MOSCOW. July 1 (Interfax) - Ukraine plans to appoint an international consultant for the sale of state-owned Ukrgasbank and Sense Bank, the nationalized Ukrainian Alfa Bank, by the end of September, Ukrainian media reported, quoting an updated extended financing program (EFF) memorandum between Kiev and the International Monetary Fund.
A bill on a procedure for privatizing state banks should be submitted to the parliament by the same time.
"We are preparing two systemic state-owned banks for sale, Sense Bank and Ukrgasbank. We are planning to appoint an internationally recognized financial advisor by end-September 2024 using a transparent procedure and in consultation with international financial institutions," the document says.
According to the previous, third review of the EFF program, Ukraine planned to appoint an international consultant to prepare the sale of these two banks by June 2024.
In the updated memorandum, commitments to reduce the state's share in the banking sector include preparing and implementing a framework for decision-making on any additional banks that come under state control, which aims to preserve value, ensure effective operational management, and reach decisions on the future of such banks.
The Ukrainian authorities have already developed capital management plans and adjusted the business plans of state-owned banks or SOBs needing capital increase to meet the requirements.
"Once the independent asset quality review is concluded, we will use its results to update the general SOB strategy and subsequently, strategies for individual banks with majority public ownership, including with respect to privatization in line with our financial sector strategy," the document says.
Ukraine has already drafted a law on SOB privatization in consultation with international financial institutions and will submit it to parliament by end-September 2024.
The bank's deputy head, Elena Zubchenko, has said Sense Bank, nationalized in July last year, was now ready to be privatized but that the Finance Ministry would have the last word on the matter.
According to National Bank of Ukraine data, Sense Bank was the eighth largest of the 63 banks operating in Ukraine as of the beginning of May by assets valued at UAH 190.85 billion, while Ukrgasbank was fifth with UAH 190.85 billion. Sense was one of the top three banks by net profit with UAH 5.04 billion and Ukrgasbank was 11th with UAH 1.94 billion.