Two state banks are being prepared for sale, PrivatBank — after the war: Cabinet decision
On June 30, the Cabinet of Ministers made a decision to update the Main (strategic) directions of the activities of banks in the state sector.
The updated version of the Main directions is aimed at:
- ensuring the financial stability of state sector banks and minimizing fiscal risks;
- managing non-performing loans (NPL) and improving corporate governance;
- gradually reducing the state's share in the banking sector.
During the martial law period, the goals of state sector banks have been defined as financing enterprises of the defense-industrial complex, critical energy infrastructure, the agricultural sector, processing industry, frontline regions, as well as mortgage lending to provide citizens with housing.
Additionally, the updated document provides for:
- updating individual strategies: each state sector bank must update its individual strategy by the end of 2026;
- management evaluation: to increase the effectiveness of supervisory boards, an annual evaluation of their activities is introduced;
- work with non-performing loans: banks must reduce the level of non-performing assets, in particular through the sale of the top 3 non-core assets and settlement of the top 3 non-performing loans by the end of 2027;
- privatization plans: the sale of share packages of JSC "UKRGASBANK" and JSC "Sense Bank" to investors is envisaged. The sale of JSC CB "PrivatBank" is allowed after the end of the martial law.
Also, to ensure response to risks related to the dishonest activities of certain independent members of supervisory boards (including 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.
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