The International Finance Corporation (IFC) will buy stake in Ipoteka Bank and will help reform the bank, the Ministry of Justice said referring to the Cabinet’s resolution of June 25.
According to the resolution, the supervisory board (with no government official eligible to be elected) of Ipoteka Bank will be formed before 2021 in order to ensure the bank’s independence. The number of independent directors will be brought to five, the chairman of the supervisory board will be elected from among them.
In addition, Ipoteka-Bank will not consult the state bodies over nominees and appointees for the supervisory board and the BOD. The new bank management is planned to be formed within the same timeline.
Ipoteka-Bank will be free to make decisions on the issues of project crediting and financing, “based on market conditions”.
The government’s shares in Ipoteka-Bank shall be transferred to the Ministry of Finance within two months for free, and are expected to go fall under 50% before 2023.