IFC considers transparent privatization of state-owned banks key to attracting investors

Transparent privatization of Ukrainian state-owned banks could be a determining factor in restoring the interest of international financial organizations in capital investment, Olena Voloshyna, head of the International Finance Corporation (IFC) representative office in Ukraine, said at the Forbes Banker forum on October 31.

"I would advise making the privatization of Ukrgasbank and Sense Bank transparent so that the market sees that it is being done correctly," she emphasized.

According to her, IFC considers banks as a key channel for small and medium-sized enterprises (SMEs) to access financing. Currently, the corporation uses two support instruments: financing of export-import operations and a risk-sharing facility, which is already working with six institutions - five banks and one leasing company.

At the same time, due to the difficulty of predicting the possibility of exiting such investments, international financial organizations have become more cautious about investing in bank capital. According to Voloshyna, the continuation of corporate governance reform and transparent privatization of state-owned banks may become drivers of the return of investor interest in the Ukrainian banking sector.

"IFC, together with the EBRD and the Dutch bank MeesPierson, were shareholders of 50% of the shares of FUIB as the first commercial bank in Ukraine, the remaining 50% belonged to large Ukrainian private companies," she recalled.

As reported, within the framework of the EFF Extended Fund Facility (EFF) program with the IMF, Ukraine is committed to reducing the state's share in the banking sector, which increased significantly during the war and by the middle of this year amounted to 54.4% in terms of total assets and 52.2% in net assets, while the number of state-controlled banks reached seven.