President of Ukraine

Volodymyr Zelenskyy: Agreement between IFC and Ukrgasbank is an important confirmation of effectiveness of reforms

25 January 2021 - 17:45

Volodymyr Zelenskyy: Agreement between IFC and Ukrgasbank is an important confirmation of effectiveness of reforms

With the participation of President of Ukraine Volodymyr Zelenskyy, a loan agreement was signed between the Ministry of Finance of Ukraine, the International Finance Corporation (IFC) and JSB Ukrgasbank to provide a loan of EUR 30 million with the possibility of further converting loans into the bank's authorized capital.

The loan is provided for a period of five years to finance energy efficiency and renewable energy projects.

"Today's signing is not only the first powerful step, which brings us closer to the strategic goal of reducing the state's share in the banking sector of Ukraine, but also a confirmation of the effectiveness of reforms implemented by Ukraine in recent years," the President noted.

According to the President, this also shows that Ukraine is a reliable partner for international investors, which fulfills its commitments and remains open to new investments in the banking sector.

"The reform of the public banking sector is one of the key prerequisites for strengthening the resilience of the financial system of our independent Ukraine and increasing its credit and investment potential. This will accelerate the achievement of European standards in the financial markets, the growth of the Ukrainian economy, ensure macro-financial stability and, most importantly, improve the welfare of the population of Ukraine," Volodymyr Zelenskyy emphasized.

The President noted that Ukraine highly appreciates the role of IFC, which has remained a reliable partner for many years and provided support in the implementation of projects in the energy, private, agricultural sectors, municipal projects, as well as helped implement the latest practices and approaches, including in reforming the state banking sector.

For his part, Prime Minister of Ukraine Denys Shmyhal stressed that the signing of this agreement is a signal to investors and future partners that one can and should invest in Ukraine.

"The International Finance Corporation will be an important indicator that the banking system of Ukraine is a stable and reliable partner for future investments. The role of the state in the banking sector will decrease, market mechanisms will help develop the capital market and the financial market in our country," he said.

Minister of Finance of Ukraine Serhiy Marchenko noted that today's event is an extremely positive signal that the state provides an opportunity to invest in the capital of banks.

Governor of the National Bank of Ukraine Kyrylo Shevchenko pointed out that for the first time in the recent financial history of Ukraine the foundation is being laid for an international investor to enter the capital of a large state-owned bank.

"This is a real victory for the entire banking sector. The partnership between the state and the International Finance Corporation will provide Ukrgasbank's customers with access to cheaper resources from international capital markets, increase the bank's reliability and stability for customers," he said.

Interim Managing Director and Executive Vice President at IFC Stephanie von Friedeburg said that a EUR 30 million loan to Ukrgasbank will help finance promising businesses, especially SMEs.

"Together with the World Bank Group, we support Ukrgasbank on the path to privatization and transformation into a more efficient institution. We als support the bank as a leader in climate finance," she said.

After the ceremony, President Volodymyr Zelenskyy also got himself acquainted with the Money Museum project at the National Bank. In particular, it provides for excursion programs, interactive activities for children and adults. This project also takes into account the principles of accessibility. In 2022, the National Bank plans to open an Educational Information Center, which will be located in the historic heart of Kyiv, on Kontraktova Square.