“On October 25, Oschadbank and the European Bank for Reconstruction and Development (EBRD) signed a mandate letter, backed by the Ministry of Finance of Ukraine, on terms of future cooperation and providing EBRD long-term financing in the form of a subordinated loan with the possibility of conversion into stocks of the Oschadbank up to EUR 100 million,” the Ministry of Finance reports.
The signing took place with the participation of the Chairman of the Management Board of the JSC Oschadbank, Sergii Naumov, and EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone.
The parties have agreed to actively work on this engagement with the EBRD that aligned and complies with the JSC Oschadbank development strategy for 2021-2024 and the Principles of Strategic Reform of the Banking Sector, which provides for reducing the share of the state in the banking sector from 60% to 25% by 2025.
To date, the EBRD has invested over EUR 15 billion in 505 projects in Ukraine aimed at reforms, strengthening of energy efficiency and energy security, support of agricultural and industrial projects, and small business.
The main conditions set by the EBRD ahead of granting the loan include the approval by the Cabinet of Ministers of the Oschadbank development strategy, development and approval with the Ministry of Finance of a privatization plan and a strategy of withdrawal from the Oschadbank capital, and the renewal, together with the EBRD, of the Oschadbank transformation programs.
On October 12, the Cabinet of Ministers approved the relevant development strategy for 2021-2024.