The Verkhovna Rada supported the draft law on the privatization of state banks

The Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy approved draft law No. 11474, which concerns the specifics of the privatization of state-owned banks. The head of the committee, Danyla Hetmantseva, announced this in a press release.

According to the draft law, the circle of possible investors for buying state-owned shares in banks is expanding. Now it is allowed to sell not only 100% of the shares, as provided by the current legislation, but also any part of the shares, which significantly increases the opportunities for attracting new investors.

The document also establishes increased requirements for legal entities that can act as financial advisors during the sale. In particular, international donors can now participate in the selection of financial advisors and in the sale procedure itself, which will provide a wider range of professional services.

Updating the rules for determining the price and conducting auctions, in accordance with the recommendations of the World Bank, is another important change. The draft law allows even one potential investor to participate in the auction, and also improves the requirements for the sales contract in accordance with modern market practices.

In addition, the new document provides for the protection of the privatization procedure from possible negative influence from former beneficial owners or current minority shareholders. This will avoid manipulations and ensure the transparency of the process.

The draft law will also contribute to increasing the transparency of the sale by increasing the amount of information to be made public, as well as by conducting auctions through the electronic trading system, which will ensure the openness and accessibility of the process for all participants.