The Ministry of Finance has signed an agreement with the International Finance Corporation (IFC) on the entry into the capital of the state-owned Ukrgasbank.
On behalf of Ukraine, the loan agreement was signed by Finance Minister Serhiy Marchenko and Ukrgasbank Chairman of the Board Andriy Kravets. On behalf of IFC, JFC Pellmar is IFC’s Regional Manager for Ukraine, Belarus, and Moldova.
“We appreciate IFC’s decision to become our investor. IFC’s entry into the bank’s capital will be the first time an international financial institution has become a shareholder in a Ukrainian government agency. This is an important step in the process of privatization of Ukrgasbank and reduction of the government’s share in the banking sector, “Andriy Kravets said.
“Today’s event is the result of effective cooperation between Ukrgasbank, the Ministry of Finance and IFC. This is a real victory for the entire banking sector, “said Kyrylo Shevchenko.
According to the agreement, IFC will provide Ukrgasbank with a loan of EUR 30 million for a period of 5 years with possible further conversion of a 20% stake into the bank’s capital. The size of the share in the share capital will be determined separately.
Thus, the signed agreement envisages the possibility for IFC to become a shareholder of Ukrgasbank in the future.
The implementation of the agreement is also the fulfillment of one of Ukraine’s obligations in the framework of cooperation with the IMF.
Serhiy Marchenko reminded that the agreement was signed as part of the reform of the state banking sector, which envisages a reduction of the state’s share in the banking system to 25% by 2025.
IFC is an international financial organization that is part of the World Bank Group.
Ukrgasbank was established in 1993. The state, represented by the Ministry of Finance, owns 94.94% of the bank’s shares.
In January-November, Ukrgasbank received UAH 765.44 million in profit and dropped out of the top 10 most profitable banks.
Source