
Ukraine will receive support from the EBRD in transforming the Oschadbank and 50 million Euros for the development of Ukrainian business
Minister of
Finance Oleksandr Danyliuk,
EBRD managing director for Eastern Europe and the Caucasus Francis Maleage and Oschadbank board
chairman Andriy Pyshny have
signed a Memorandum of Understanding stipulating support to the Oschadbank for the improvement of corporate management on
November 25. Also, an agreement on joining the trade support program was signed
enabling the Oschadbank to receive 50 million Euros
from the EBRD for the support of Ukrainian business.
Why is it important?
The Memorandum
of Understanding is one of the first steps in the systemic reform of the
state-owned banks which is being implemented by the Government of Ukraine with
the support of the EBRD and other international partners.
Also, this
is one of the key reforms in the financial sector which shall improve the
effectiveness, profitability and transparency of the state-owned banks. The
state-owned banks shall be released from political influence and will be
operating as purely profit-oriented businesses.
What’s the advantage?
The Oschadbank will receive a comprehensive package of
technical aid from the EBRD which at the first stage will be used for the
development of credit supply to micro, small and medium-sized business as well
as for centralization and optimization meant to increase the operational
effectiveness of the Oschadbank network, risk
management and compliance.
These
objectives are crucial for the further successful transformation of the Oschadbank. This also has a positive impact on the bank
capitalization and its attractiveness for investors.
One of the
key elements in the reform of the state-owned banks is the sale of the minority
share package of the Oschadbank and the Ukreximbank by the middle of 2018. The state will remain
the major shareholder and at the same time receive more transparency and
effectiveness in the management of these banks.
“Our key
goal is to make the state-owned banks effective and transparent. This means
delivering better services for the customers as well as saving billions of hryvnas of taxpayers’ money now spent annually to
recapitalize these banks. The state will be able to use the saved funds for
economic development.
The signing
of the Memorandum is a positive sign for international investors and a
significant proof that the Oschadbank is changing.
The
agreement on participation in the trade support program will give small and
medium-sized business access to loans at each of more than 4 offices of the Oschadbank”, Minister of Finance Oleksandr
Danyliuk said during the signing ceremony.
What’s next?
The signing
of the Memorandum is the first step where the parties have declared their
further intentions and steps. The next steps include:
1.
The
Government shall approved and the Parliament shall adopt the reform of the
state-owned banks (draft law on changes in the corporate management of the
state-owned banks);
2.
New
supervision boards shall be established which shall consist of independent
directors and state representatives;
3.
Internal
processes and effectiveness of the management of the state-owned banks shall be
improved.