Ukraine is preparing to turn a state bank into a development bank.

The goal is to turn one of the state banks into a development bank, similar to KfW in Germany, said the head of the Parliamentary Committee on Finance, Danylo Hetmantsev, during the Yalta European Strategy forum. In his opinion, this step will increase the effectiveness of Ukraine’s recovery and attract more funding, including private funding.

“This bank should have one main task – to finance the restoration, the entities participating in the restoration, special rules and specialization in development projects,” Hetmantsev said.

He also emphasized the introduction of special regulations and licenses for this bank to ensure it can take over part of the needed financing.

After the nationalization of Sens Bank in July, five state-owned banks remained in Ukraine, four of which are among the top five in terms of assets. State-owned banks generate a significant share of net profit and have a large share of the Ukrainian banking system’s total assets.