![]() Ukraine completed the nationalization of Sense Bank, previously known as Alfa-Bank Ukraine and owned by sanctioned Russian billionaire Mikhail Fridman, in July 2023. Kyiv-based investment bank Dragon Capital is also reportedly eyeing Sense Bank.īoth banks were among the 10 most profitable banks in Ukraine in 2023. The news comes several weeks after Ukraine's Deputy Finance Minister Yurii Drahanchuk said that foreign investors were interested in purchasing Sense Bank and another state-owned bank, Ukrgasbank. 12, citing unnamed sources familiar with acquisition talks. Hungarian banking group OTP Bank, once on Kyiv's international sponsors of war list, has expressed interest in buying Ukraine's recently nationalized Sense Bank, Ukrainska Pravda reported on Feb. (Okondrat/Wikipedia) Privatization perils With Ukraine’s reconstruction costs standing at over $400 billion and counting and an expected $37 billion in external financing needs for 2024, the amount Ukraine stands to get with the decision is a drop in the bucket.Ī Sense Bank branch in Kyiv, Ukraine, on Jan. “Ukraine is ready to continue working with partners on reaching our ultimate goal: making Russian assets available to Ukraine. Ukraine’s Foreign Minister Dmytro Kuleba welcomed the decision, but urged further, “ambitious and prompt” steps to help Ukraine get access to these funds. The decision is the next step in potentially enabling part of the frozen Russian assets to be ultimately redirected to help pay for Ukraine's reconstruction, the European Council said in a statement following the announcement. The company has said that the proceeds from those assets are around 4 billion euros ($4.3 billion) per year. This mostly concerns Euroclear, a Belgium-based financial services company that holds about 191 billion euros ($205 billion) in Russian assets. The Council ruled that the central securities depositories (CSDs) holding more than 1 million euros ($1.07 million) in assets from the Russian Central Bank must separate any profits generated from the primary accounts. The new measures set up the legislative framework through which the profits made on some of the confiscated assets could be given to Ukraine through the EU’s budget. Since then, Washington, Brussels, and Kyiv have discussed legal ways of channeling these funds to aid Ukraine. Western countries immobilized around $300 billion in Russian assets at the start of the full-scale invasion. 12 a set of new measures that pave the way to using profits generated from frozen Russian Central Bank assets to finance Ukraine’s reconstruction. The Council of the European Union adopted on Feb. (Vlad Karkov/SOPA Images/LightRocket via Getty Images) Inching forward Western states have frozen $300 billion in reserves belonging to the bank. The Russian Central Bank in Moscow on April 4, 2023. Read a recent speech of Pyshny’s on our website about how the Central Bank has maintained fiscal stability in Ukraine over two years of war here. The experience of previous missions clearly demonstrates that thanks to the deep expert interaction and synergy between the teams of Ukraine and the IMF, it is possible to work tools and solutions," head of NBU Andriy Pyshny said. “The tasks of this year will certainly not be easier, but we are very pragmatic towards the risk assessment process. On its Facebook page, the NBU said that it expects the upcoming review to be successful. a requirement of the fund’s $15.6 billion loan program to Kyiv. With their plan, Ukrainian officials are hoping to reassure the IMF that Ukraine can service its debts in the absence of aid from the U.S. ![]() “Measures envisaged by Plan B are currently being discussed and will potentially include the activation of the domestic borrowing market, fiscal optimization, and consolidation,” the National Bank of Ukraine told Bloomberg in a written comment. 9 that Ukrainian officials were preparing to present the IMF delegation with a plan that included expanded domestic bond sales, tax hikes, and spending cuts to fill gaps in the budget in the event U.S. Ahead of the visit, Bloomberg reported on Feb.
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