ODESA - Deputy Finance Minister Artem Shevalev says that it is inappropriate to merge state-owned banks with other large-scale state assets from the production, construction and other sectors into one Ukrholding, as is proposed by the Economic Development and Trade Ministry.
“We don’t see any advantage there. What is more, the proposal brought by our peers mentions state banks that have almost ceased to exist: the Ukrainian Bank fore Reconstruction and Development (UBRD) has been transferred to the State Property Fund for privatization, and the State Land Bank is also virtually to go. These are not full-fledged banks for being considered for incorporation into Ukrholding,” he told Interfax-Ukraine on the sidelines of the Odesa Financial Forum on Sept. 25.
According to Shevalev, the Finance Ministry received this proposal from the Economy Ministry “the other day.”
The Finance Ministry is currently finishing the development of a strategy or a road map on the development of the state banks and banks working in the state sector.
“And it offers our vision of how to improve corporate governance at the state banks along with financial transparence and engagement of independent control – we take this very seriously,” he said.
In his words, the road map will be sent to the government within the coming weeks, as it is being finalized by PricewaterhouseCoopers now.
“The document highlights all the elements of the state banking sector, not only three largest banks we all know [Oschadbank, Ukreximbank, Ukrgasbank], but it also mentions the UBRD, Rodovid Bank, the State Land Bank. There are several banks with quasi-sovereign participation, for example, with [State Rail Transport Administration] Ukrzaliznytsia or the city of Kyiv being a shareholder. But its major focus is recommendations for the top three banks,” Shevalev explained.
According to the Finance Ministry, Ukrgasbank’s future is its privatization, he said. The ministry plans to invite the International Finance Corporation and the European Bank for Reconstruction and Development as its minority stockholders in the near future. In three years, it is expected to be sold to a strategic investor.
“Should no strategic investors get interested in it for this or other reason, then three years after we’ll raise a question of merging it with one of the existing state banks,” he said.
