NBU governor: PrivatBank will soon be put up for sale
Ukrainian authorities plan to put PrivatBank, which was nationalized in 2016, up for sale soon.
“Under our plans, PrivatBank, Ukraine’s largest banking
asset, will soon be put up for sale. We believe that the privatization of
PrivatBank — which holds 20% of the Ukrainian banking market — will draw the
interest of the most prestigious international investors, including from the US
and the EU,” Governor of the National Bank of Ukraine Kyrylo Shevchenko said in
an interview with GlobalCapital.
According to him, the Ukrainian banking sector holds
significant potential for international investors. “In the near future, we hope
that international banking groups will take equity in Ukrainian state-owned
banks,” the NBU governor noted.
Shevchenko added that about 100 court processes were ongoing
now around PrivatBank, noting “it is an exceptionally complex matter.”
At the same time, he noted that Ukraine aimed to resolve the
situation with PrivatBank by the end of this year. “We hope that the court
cases will have been resolved and we will be able to focus solely on recovering
assets,” the banker said.
According to his forecasts, the state’s share of the banking
market will fall from 55% to 25% in five years. “This process will assist the
Ukrainian banking system in gaining greater independence and promote the banks’
operation according to market-driven principles,” Shevchenko said.
As a reminder, PrivatBank was nationalized in December 2016.
On April 18, 2019, the Kyiv District Administrative Court declared the nationalization
of PrivatBank illegal. The NBU, the Ministry of Finance and PrivatBank lodged
an appeal against this ruling.
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