Oschadbank hopeful to receive financing from EBRD by year-end – MinFin

JSC State Savings Bank of Ukraine CEO Serhii Naumov hopes that the European Bank for Reconstruction and Development will offer subordinated financing to the lender by the end of 2021 as part of preparations to become its shareholder, Ukrainian news portal MinFin reported Feb. 4.

Naumov said attracting a large international financial institution as a shareholder is a lengthy process, and Oschadbank must first become a member of Ukraine's deposit guarantee fund before it happens.

Oschadbank expects that the Ukrainian parliament to soon pass necessary legislation so it could join the bank guarantee fund in the first quarter, which will open the way for discussions to obtain subordinated financing from the EBRD, a first step for the latter to become a shareholder at the bank. Naumov noted that Oschadbank is likely to remain under state control until at least 2025.

Currently, retail deposits at Oschadbank are fully guaranteed by the state, compared with a 200,000 hryvnia deposit guarantee available for members of the deposit guarantee fund.

As of Feb. 4, US$1 was equivalent to 28.12 Ukrainian hryvnia.