The team of the transformation office of state-owned Ukreximbank (Kyiv) is actively considering the integration of artificial intelligence (AI) into its systems and has already started using it in pilot modes, said Andriy Malakhov, head of the transformation office of the financial institution.
“That is, in parallel with the internal transformation, we understand that if we do not develop our skills in step with the market, we will simply not be competitive in five years. There are many areas: uninterrupted operations, information security, changing internal operating models, remote channels,” he said at the International Financial Club BANKIR conference.
In addition, Malakhov noted that Ukrexim is now in the middle of its path to what it wants to achieve in the transformational direction.
“In 2021-2022, we closed infrastructure issues to prepare our bank for the transformation of business processes, and the next stage is the transformation of our remote channels. We have quite ambitious plans,” the banker emphasized.
However, he noted that the state-owned bank does not always manage to implement changes promptly due to the specifics of its clients in the form of government agencies, but, according to him, Ukrexim’s team is striving for this.
According to the National Bank of Ukraine, as of November 1, 2023, Ukreximbank ranked 3rd (UAH 255.01 billion) among 63 banks operating in the country in terms of total assets.
State-owned Ukreximbank (Kyiv) and one of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv), signed agreements on long-term debt restructuring of the company’s financial obligations in late January, the press service of the financial institution reported on Tuesday.
“Thanks to this, the parties ensured, on the one hand, a working asset and the return of funds to the state bank, and, on the other hand, an acceptable level of financial burden for one of the market leaders, which makes it possible for it to function successfully,” the state bank’s website reports.
Andriy Vadatursky, CEO of the agricultural holding, noted that Ukreximbank is the company’s largest creditor, and cooperation with the bank started 27 years ago.
In particular, he recalled that earlier, thanks to the support of Ukreximbank, Nibulon managed to build a sea transshipment terminal in Mykolaiv, and in 2013-2014 the company’s largest loan portfolio to the bank was recorded at $165 million, which, according to him, “characterizes the level of cooperation and mutual understanding that we have achieved in previous years and confirmed now during the restructuring.”
“I am convinced that now we should not wait for help from abroad, we should look for support and understanding on our territory. We have found this support in our Ukrainian banks, which are the embodiment of government policy,” Vadatursky stated.
JV Nibulon LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.
“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries. In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.
Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.
Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and was forced to move its headquarters from Mykolaiv to Kyiv.
According to the National Bank of Ukraine, as of November 1, 2023, Ukreximbank ranked 3rd (UAH 255.01 billion) among 63 banks operating in the country in terms of total assets.
State-owned Ukreximbank is the first in the Ukrainian market to conduct a public sale of pledged property – jewelry made of precious metals and gems – through the OpenMarket electronic trading system (SE SETAM of the Ministry of Justice of Ukraine).
Unique nature of the sale
For a long period of time, the sale of pledged gold jewelry was complicated due to the lack of clear procedures that would allow the sale of jewelry at public auctions. Until 2022, jewelry was redeemed in favor of the state through the State Storage of Precious Metals, but due to a lack of funds in the budget, this process was “frozen”.
In 2022, a new Procedure for the Sale of Jewelry and Other Household Items Made of Precious Metals in the Course of Enforcement of Court Decisions and Decisions of Other Authorities was adopted. The Procedure, approved in February 2022, provides for a number of examinations prior to public bidding to determine the metal sample, determine the characteristics of gemstone inserts, etc.
Ukreximbank is the first bank in Ukraine to carry out all the necessary procedures for the sale of jewelry within the framework of enforcement proceedings, involving the Ministry of Finance of Ukraine and the Central State Assay Control Enterprise.
Thus, within the framework of the enforcement proceedings initiated in accordance with the requirements of the court decision on debt collection in favor of Ukreximbank, for the first time, a lengthy and extremely complicated procedure was completed from the preparation of the act of inventory and seizure of the debtor’s property, namely, jewelry made of precious metals and precious stones to the publication of the relevant announcements on the platform of the electronic system of SE SETAM on the date of the scheduled electronic auction.
The procedure for obtaining the statutory expertise is regulated and complex, but the coordination of the actions of the recoverer and the state enforcement officer made it possible to complete it in the shortest possible time. The property appraisal report, on the basis of which the starting price of the property put up for sale was formed, received by the state enforcement officer, contains references to
– an act of examination of valuables that have been accepted by the Central State Assay Control Enterprise;
– the act of the results of the examination of jewelry by an employee of the Ministry of Finance of Ukraine;
– the act of gemological examination of inserts.
Also, this is one of the rare cases when the Bank manages to successfully foreclose on such type of collateral as goods in circulation, usually when the borrower is recognized as a problematic borrower and the goods are no longer available.
Terms of sale
Lot No. 1
The starting price of the lot is UAH 1,972,320.00.
The total weight of the items is 1,355 kg.
The guarantee fee for participation in the auction is UAH 98,616.00.
The auction date is December 29, 2023.
Register for the auction, detailed description of the auction conditions and the lot itself by following the link.
Lot No. 2
The starting price of the lot is UAH 594 520.00.
The total weight of the products is 482.56 g.
The guarantee fee for participation in the auction is UAH 29,726.00.
The auction step is UAH 11,890.40.
The auction date is December 19, 2023.
To register for the auction, for a detailed description of the auction conditions and the lot itself, please follow the link.
Lot No. 3
The starting price of the lot is UAH 75 330.00.
The total weight of the products is 61.13 g.
The guarantee fee for participation in the auction is UAH 3,766.50.
Auction step is UAH 2,259.90.
The auction date is December 19, 2023.
To register for the auction, for a detailed description of the auction conditions and the lot itself, please follow the link.
The OpenMarket auction (SE SETAM of the Ministry of Justice of Ukraine) is a simple and effective means of selling and purchasing property via the Internet. The online auction has been operating throughout Ukraine since 2014, and the total amount of sales since its launch is UAH 21.4 billion.
Ukreximbank has joined the “єOsela” program, the press service of the Ministry of Economy reported.
It is reported that Ukreximbank and “Ukrfinzhytlo” signed a corresponding agreement on August 1. Now 6 partner banks take part in the program: Sberbank, Privatbank, Ukrgasbank, Globus Bank, Sky Bank and Ukreximbank.
“Joining one more bank to the list of partners expands opportunities for borrowers wishing to purchase housing or improve housing conditions,” the release said.
As reported, the program of affordable mortgage lending “єOselia” has worked in Ukraine since October 2022. On a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing can qualify for contract servicemen of the AFU, security and defense sector workers, medical workers, teachers, researchers. Since its launch in 2022, partner banks have already issued more than UAH 3 billion in loans to more than 2.2 thousand participants.
Since August 1, to apply for participation in the program “єOsela” at 7% can be war veterans, combatants, IDPs and citizens who do not have their own housing more than the standard area.
An apartment can be chosen in a house not older than three years or built by a developer accredited by a partner bank. At the same time, the normative requirements for the area and the marginal cost of the apartment are preserved.
You can apply for participation in the program in the mobile application “Diya”.
At the end of 2022, the government additional capitalized Ukrfinzhytlo for 30 billion UAH through the issue of domestic state loan bonds. According to Deputy Prime Minister and Minister of Economy Yulia Sviridenko, such financing is enough to issue 12-15 thousand mortgage loans in 2023.
The profit of state-owned Ukreximbank for the first half of 2023 amounted to UAH 1.976 billion, while the same period of 2022 the bank ended with a net loss of UAH 2.537 billion.
“June’s net profit of UAH 440 million allowed Ukreximbank to complete the first half of 2023 with a profit of UAH 1.976 billion. For the same period of 2021, the Bank earned for the state UAH 1.1 billion,” the bank reported on Friday.
It is indicated that interest income generated by the working loan portfolio of the bank takes the main part in the structure of income.
In addition, the bank managed to settle NPL for UAH 670 million, the release said.
Ukrexim said that in the second half of 2023 it intends to increase lending to the economy, offering long-term resources under MFI programs, including grant and compensation components, as well as to support cities and communities in the restoration of infrastructure
“Ukreximbank will continue to fulfill its specialized role in Ukraine’s banking system – strengthening exports, improving the efficiency of imports, financing strategic sectors of the economy,” the state bank stressed.
According to the National Bank of Ukraine, as of June 1, 2023, Ukreximbank ranked 3rd in terms of assets (UAH 274.04 billion) among 65 banks operating in the country. As of July 1, the network of the state bank has 48 branches across the country.
The European Bank for Reconstruction and Development (EBRD) has signed a EUR50 million loan agreement with Ukraine’s state-owned Ukreximbank, the loan funds will be used to finance private clients and municipalities.
“Ensuring uninterrupted financing through time-tested partner financial institutions such as Ukreximbank despite the war so that the private sector and municipalities can continue to operate, provide services and support the country is a priority for the EBRD in Ukraine,” EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone said in a release Friday.
It is specified that the EBRD’s special crisis response fund covers the risk on the EUR25 million loan.
“During the war and post-war reconstruction phase, it is very important for Ukreximbank’s clients in priority sectors to have access to investment, commercial financing and war risk coverage. The new EBRD financing will certainly contribute to greater sustainability and adaptability of the Ukrainian economy,” said in turn Oleksandr Shchur, a member of the supervisory board of Ukreximbank.
According to the National Bank of Ukraine at the beginning of May, Ukreximbank with total assets of 275.46 billion UAH is the third largest Ukrainian bank among 65 operating in the country.
