Sale of PrivatBank allowed after martial law ends - Finance Ministry

The sale of PrivatBank is allowed after martial law ends.

This is announced in a statement by the Ministry of Finance, Ukrainian News Agency reports.

On June 30, the Cabinet of Ministers adopted a decision to update the Main (Strategic) Directions of Activity of Public Sector Banks.

The document was developed by the Ministry of Finance with the involvement of international experts to fulfill Ukraine's obligations to the International Monetary Fund and the European Union.

During the period of martial law, the goals of public sector banks are defined as financing enterprises of the defense-industrial complex, critical energy infrastructure, the agricultural sector, the processing industry, front-line regions, as well as mortgage lending to provide citizens with housing.

In addition, the updated document provides for:

- updating individual strategies: each public sector bank must update its own individual strategy by the end of 2026;

- management assessment: to increase the effectiveness of supervisory boards, an annual assessment of their activities is being introduced;

- work with non-performing loans: banks should reduce the level of non-performing assets, in particular, through the sale of top 3 non-core assets and the settlement of top 3 non-performing loans by the end of 2027;

- privatization plans: the sale of stakes in JSB Ukragasbank and JSC Sense Bank to investors is envisaged. The sale of JSC CB PrivatBank is allowed after the end of martial law.

Also, in order to ensure a response to risks associated with the unscrupulous activities of individual independent members of supervisory boards (in particular, integrity risks, reputational risks), the list of grounds for their dismissal will be expanded, while maintaining the principle of independence of supervisory boards from operational interference in their activities.

As Ukrainian News Agency earlier reported, on December 18, 2016, the Cabinet of Ministers adopted a decision on the state's participation in the capital of PrivatBank.

The transfer of PrivatBank to state ownership took place in accordance with Article 411 of the Law "On the Deposit Guarantee System of Individuals".