The transparent privatisation of two major state-owned Ukrainian banks — Ukrgasbank and Sense Bank — would send a strong signal to international investors and could help revive foreign interest in the country’s financial sector, the International Finance Corporation (IFC) said, reported Ukraine Business News.

Olena Voloshyna, head of IFC Ukraine, said that while international financial institutions (IFIs) see Ukrainian banks as critical for supporting small and medium-sized enterprises (SMEs), particularly through export-import financing and risk-sharing mechanisms, direct capital investment remains limited amid uncertainty over exit strategies during wartime.

“Transparent privatisation and consistent corporate governance reforms are essential to rebuild investor confidence,” Voloshyna said, noting that successful sales would demonstrate Ukraine’s commitment to market-based reforms.

The IFC currently operates a risk-sharing facility in Ukraine with five banks and one leasing company, helping SMEs access credit. The organisation has a long history of involvement in Ukraine’s banking sector, including a past 50% joint ownership of the First Ukrainian International Bank with the EBRD and Dutch lender MeesPierson.

The planned privatisations are also part of Ukraine’s commitments under its IMF-supported Extended Fund Facility (EFF), which requires the government to reduce its majority ownership in the banking sector — now accounting for 54.4% of total assets — as part of broader post-war recovery and financial liberalisation efforts.