Ukrainian banking sector at the start of development. Business in Ukraine
Despite he risks, there are many market players who are ready to invest in the banking business. There are investors who believe that now the time has come, because they expect economical growth in the future of Ukraine.
Ukraine is also approached by international financial institutions that are ready to invest in the domestic banking system. For example, the European Bank of Reconstruction and Development (EBRD) is aimed at supporting Ukrainian banking system. The organization had a stake in bank “Forum” which was taken off the market in early 2014. Now, according to official figures, the EBRD has a 15% stake in “UkrSibbank”, “Megabank” and “ProCredit Bank”. At the same time, in mid-March this year, it was reported that in “ProCredit Bank” the European Bank of Reconstruction and Development sold its stake the majority shareholder ProCredit Holding (Germany).
At the same time, Chairman of the Board of Raiffeisen Bank International Carl Sevelda issued a statement that the EBRD may buy a minority stake in Ukrainian business – “Raiffeisen Bank Aval”.
Not only EBRD is interested in working in the banking institutions of Ukraine. Actively working is also IFC (International Finance Corporation) which also has a small stake in the banks. Also other international financial banks are considering the possibility of joining this sphere.
International financial institutions – EBRD and IFC are considering options for participation in the capital of state banks. Earlier, the Managing Director of the EBRD for Eastern Europe and the Caucasus Francis Malizha said that the bank will help Ukraine to sell stakes in the nationalized banks “Ukrgasbank” and help in remediation of “Rodovid Bank”. Sale of these banks was planned in 2013, but at that time the government did not find a buyer.
Given the situation in the banking sphere, when the price of entering the market fell, investors come to Ukraine for taking their part due to expectations of future growth. Though there are not plenty of them, it is a good start for the resumption of the economy and increase in the future.
This is a positive signal and example for potential investors that substantial funds can be invested in Ukraine, particularly in the banking sector.
