–°lean-up of Ukraine's banking sector: EBRD willing to take stake in Ukraine's largest state bank

17:08 Nov. 25, 2016

EBRD willing to take stake in Ukraine's largest state bank

Pedestrians pass an JSC Oschadbank bank branch beside residential apartments in Kyiv, Ukraine, May 29, 2014 (Vincent Mundy/Bloomberg via Getty Images)

The key condition is that Oschadbank's management, operational and financial performance are changed

The European Bank for Reconstruction and Development (EBRD) is prepared to buy a stake in Ukraine's largest state-owned bank, Oschadbank, provided changes are made to its management and operational and financial performance, Reuters reported on Friday.

"The EBRD is prepared to support the government and Oschadbank on the path of transformation and in the future invest in the share capital ... on condition the bank achieves key targets," Oschadbank said in a statement ahead of a joint briefing with the EBRD.

Read also Ukraine-IMF cooperation is at risk

Ukraine has launched a clean-up of its banking sector, including the potential privatisation of up to 20 percent of the country's top banks.

The EBRD and Oschadbank have signed a memorandum of understanding that includes guarantees from the EBRD for up to 50 million euros (USD 53 million) to support Ukrainian exporters and importers.

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