Role of banks and private equity in Ukraine’s economy recovery was discussed in Kyiv
Kyiv, 26th of June 2014
A conference titled “Private Equity opportunities in Ukraine to restart economic growth. Role of banks in the process" took place in Kyiv. American Chamber of Commerce in Ukraine together with Deloitte were the organizers. CFC Consulting was a conference partner. More than 70 representatives of the banking and investment sectors were present.
Opening the conference, Bernard Casey, President of the American Chamber of Commerce, said:
“Ukraine’s investment climate now needs a significant support from the international financial institutions and banks. Uniting our efforts we can return to financial stability, which, in turn, will help attract additional international capital into the country’s economy. As a result we can secure a place in G20 for Ukraine by 2020. To achieve this, we must just realize the economic development strategy, which includes 5 key areas:
1. Increase in production output of key industrial sectors.
2. Ukraine’s transition to a more high-tech and export-oriented economy.
3. Development of the public-private partnership in Ukraine’s infrastructure.
4. Large scale privatization of the state companies.
5. Development of small and medium-sized businesses (SME).”
Several panel discussions were held. At an introductory panel representatives of the international financial institutions (World Bank and the International Financial Corporation) and of the Ukraine’s Parliament discussed business climate, use of knowledge and opportunities in institutional development and creation of the private equity market.
The next panel saw participants from the private equity funds and investors: Horizon Capital, Clever Management, Abris, NCH Advisors and Dragon Capital. They discussed practical aspects of private equity transactions and who can be a target: parameters, industries, structures, funding.
Deloitte’s corporate finance Partner Dmitriy Anufriev, a moderator, observed: “Our country received a unique chance to hold positive reforms. A key part in renewing Ukraine’s economic growth will be played by investors who will bring not just the capital, but also the required know-how and experience. Careful analysis of financial, tax and legal aspects of a transaction will add comfort to the investment process and will increase chances of mutual success of investors, creditors and companies.”
Steven Fisher, Citibank (Ukraine) Managing Director, moderated the banking panel with: BNP Paribas (Ukraine), ING (Ukraine), UniCredit (Ukraine) and FUIB. They discussed current issues in banking sector, including non-performing assets and their restructuring, and cooperation between banks and private equities.
Concluding, Oleg Mistuque, technical expert of World Bank, described a proposed structure of transaction to address bad debts through private equity investments, motivation and rewards for participants; and Deloitte’s Dmitriy Anufriev and Taras Kozhushko talked about the financial, tax and legal issues which banks and investors should consider in deals within Ukraine.
Vasyl Myroshnychenko, Head of CFC Consulting, said: “Private equities, banks and private investors are very important for reforms in Ukraine in this difficult time. A good example for Ukraine will be the economical reform in Macedonia, Bosnia and Herzegovina in mid-90’s and the role of financial players initiated by George Soros.”