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One Ukrainian state bank will be reorganized into a bank for reconstruction.

Denmark and Latvia allocate more than €1B for Ukraine’s reconstruction.

Destroyed and damaged residential buildings in Borodyanka after Russia's invasion of Ukraine after srtrikes

To accumulate and distribute resources for reconstruction, Ukraine needs to create a specialized state development bank (created by reformatting one of the five state banks), which will be removed from the system of general banking supervision and regulation, said the chairman of the financial committee of the parliament, Danylo Hetmantsev.

The creation of such a bank could quicken the implementation and scaling of reconstruction projects (including through the bank’s issuance of special bonds and attracting financing from international financial organizations) after the war. Launching such a state bank has been necessary due to Ukraine’s huge losses and restoration needs. According to Hetmantsev, two contenders for this function are Ukreximbank and Ukrgazbank.

He also explained that with Ukraine still in the midst of the war and for five to ten years after its end, it is appropriate to concentrate the bank’s resources on programs that provide preferential financing for businesses and citizens in priority industries.

 

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