HOUSE_OVERSIGHT_026139.jpg

and other electronic services. IMF has demanded that the resolution of this issue as well as the recapitalisation of other banks, as it resulted from the AQRs performed by NBU, is a prerequisite for the disbursement of its 4th tranche which in fact was executed successfully by the Ukrainian administration. As a result the banking sector presented record losses in 2016 of US$6.2 billion (Privatbank US$5.2 billion). 1Q17 is already in profit (US$220 million) and is expected to continue increasing throughout the year. The current landscape is that 40 banks make up the 98% of the assets, the top 20 the 90.2%, the top 10 the 74% and of which 10 the top 4 banks are state owned and make up the 52% of the assets. Top 20 banks in Ukraine Bark Net assets, Market share by &m assets, % {.Prvatbank | 7,742 17.7 statoownedbanks 518% 2. Oschadbank 7,411 16.9 banks with foreign capital 30 4%, 3. Ukreximbank 5,642 129 | of which 4. Raiffeisen Bank Aval 1,970 45 Russian government owned 84% 5. Ukrgasbank 1,897 43 | Ukrainian banks 6. Sberbank 1,698 39 7. Ukrsibbank 1,596 37 8.FAIUB 1,568 36 9. Alfa Bank 1,371 34 10. Ukrsotsbank 1,305 3.1 11. Prominvestbank 1,169 28 12. Credit Agricole Bank 1,052 24 13. OTP bank 874 2 14. Pivdennyi 727 1.7 15. VTB bank 706 17 16. Citibank 685 16 17. ING bank Ukraine 611 14 18. ProCreditBank 426 1 19. Kredobank 390 09 20. Megabank 317 07 For the State Owned Banks, namely Privatbank, Oschadbank, Ukrexim and Ukrgas, the plan is that they prepare them for sale in the medium term, in around 2-3 years. To this purpose EBRD mostly and IFC to a lesser extent has been assisting the Government by placing directors in the Supervising Boards of these banks, so that corporate governance is implemented. HOUSE_OVERSIGHT_026139