KYIV. Aug 31 (Interfax-Ukraine) – The European Bank of Reconstruction and Development (EBRD) supports the new approach of the Ukrainian government towards the privatization of state-owned facilities and continues to discuss the provision of technical help on the issue, EBRD Director in Ukraine Sevki Acuner told Interfax-Ukraine.
“We consider the new approach more sensible and wise. The privatization must be conducted in a transparent way by giving the potential investors time for due diligence: If the sale was conducted in the old way, by putting 5% on the exchange house to determine the price, it wouldn’t allow for a full attraction of investors to the market. Only an insider with inside knowledge could ‘put money on the table.’ The attempt to assess the actual market value of the asset in such a way would be futile,” he said.
According to the agency’s interlocutor, this position is shared by not only the EBRD, but also by international financial organizations working in Ukraine.
Acuner said that the EBRD and other donors are discussing the provision of technical help to Ukraine in two directions: to prepare legal amendments for the privatization under new rules, and in practical issues of privatization.
“We’re looking into the possibility of giving the aid to the State Property Fund to organize and conducting the ‘due diligence,’ pre-privatization analyses, including value assessment, ecological research, legal analyses.
There’s also a possibility of help in reforming the laws needed for the privatization taking the best international experience into account,” Acuner said.
According to him, both the EBRD and USAID are ready to provide significant technical aid to Ukraine to conduct transparent and efficient privatization.
“There will be a discussion next week among international financial organizations working in Ukraine to coordinate the support,” Acuner said.
Acuner also expressed hope that Ukraine would continue to pass progressive reforms.
