By KYIV. Dec 7 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) sees its main ambition plugging the capital shortfalls in Ukraine’s banks to contribute to a well-functioning banking sector and avoid any delay in the reconstruction of the country, EBRD President Odile Renaud-Basso said in an interview with Interfax-Ukraine.
Asked about the EBRD’s ability to participate in the additional capitalization of Raiffeisen Bank and UkrSibbank, of which it is a minority shareholder, the president said that the EBRD would be considering providing new capital instruments to banks when and if they need it.
According to her, the goal is the same – to return to growth and active financing of the real economy, including together with our partners in Raiffeisen and BNP.
"Once the situation allows, and the State returns to the strategy of privatising Oschadbank, we will resume our dialogue with the authorities on EBRD’s role in reducing the share of the State in the banking sector," Renaud-Basso also said in response to a question about the continued interest in the EBRD’s entry into the charter capital of the state-owned Oschadbank.
At the same time, the president declined to comment on the withdrawal of Megabank, in which the EBRD had a minority stake, citing the separate private client transaction as a "sensitive commercial matter."
Speaking about the bank’s own portfolio in Ukraine, Reno-Basso said that corporate clients have been affected by the war and are operating at a reduced capacity, due to restricted logistics (in particular exporters), damages to their assets, reduced local demand and shortage of personnel.
"Since the beginning of the war, EBRD has applied a constructive approach to managing its portfolio providing forbearance, deferrals and restructuring in parallel with new funding supporting their short-term liquidity and vital operations," the bank’s president said.
