KYIV. Oct 7 (Interfax-Ukraine) – Foreign investors who buy distressed assets have shown interest in Ukraine. Improved operation of the Deposit Guarantee Fund and judicial system activity on the domestic market of distressed assets should grow, the founder of ICU Investment Group Makar Paseniuk has said.
“Some specialized investors who buy distressed assets and work with risk legislation have shown interest in Ukraine. They are ready to participate in the privatization process,” he said at the Ukrainian Financial Forum in Odesa organized by ICU.
He said that the balance sheet value of assets of insolvent banks passed to the Deposit Guarantee Fund totals some UAH 405 billion.
“It is clear their market value according to the assessments [of the Deposit Guarantee Fund] is around 24% [of the balance sheet value] and, according to assessments of people who are ready to invest, at least five or seven percentage points less. However, this is around $2 billion, which is a large sum for our country,” Paseniuk said.
He said these assets of the fund are the most realistic for sale on the Ukrainian market. Similar opportunities in the private sector are an illusion, and the privatization is not interesting for financial investors.
Commenting on other tools in Ukraine, he said restructuring of foreign commercial debt and macrostabilization yield on domestic liabilities fell from 23% to 17-18% per annum, and for eurobonds reached some 8% per annum, compared to two-digit figures earlier.
He said rates for domestic loan bonds would fall proportionally to the reduction of the refinancing rate by the National Bank of Ukraine (NBU) and liquidity growth.
