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EBRD welcomes step towards pre-privatization engagement with Ukraine’s Oschadbank
EBRD, Kyiv, Ukraine,
Mon, Oct 25, 2021
Mandate letter paves way for EBRD role in development of state savings bank
- EBRD and Oschadbank, Ukraine’s state savings institution, move towards pre-privatisation deal
- Partners sign mandate letter backed by Ministry of Finance
- Oschadbank expected to join Deposit Guarantee Fund
The European Bank for Reconstruction and Development (EBRD) and Ukraine’s state savings bank have agreed today to work together towards a pre-privatisation engagement that will help commercialise Oschadbank, improve its corporate governance and attract a robust investor.
The agreement was formalised today by Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus, and Serhii Naumov, CEO of Oschadbank, in a mandate letter backed by Ukraine’s Ministry of Finance.
The step is in line with the development strategy of Oschadbank for the period 2021-24 and with the government’s Principles of Strategic Reform of the Banking Sector, which include reducing the state’s share in the banking sector from 60 per cent to 25 per cent by 2025.
Mr Naumov said: “The mandate letter paves the way for further cooperation with the EBRD within the implementation of Oschad’s strategy recently approved by the Cabinet of Ministers. We express our deep gratitude to our strategic partner, which once more proved its intention to support Oschadbank on its way to greater efficiency and privatisation.”
Mr Patrone commented: “This is an important step in our long term partnership with Oschadbank and Ukraine’s Ministry of Finance on the commercialisation and eventual privatisation path. It is also consistent with the EBRD’s broader partnership with the Ukrainian authorities in their reform agenda.”
As part of its engagement with Oschadbank, the EBRD expects that the lender will join the country’s Deposit Guarantee Fund, in a move that will further level the playing field in the banking sector and promote fair conditions for the privatisation process.
The EBRD is a leading institutional investor in Ukraine. To date, the Bank has invested more than €15 billion in 505 projects in the country, with a focus on assisting stabilisation, anchoring reforms, strengthening energy efficiency and energy security, and supporting agricultural and industrial projects, as well as smaller businesses.