The President’s Office states that the bank can be ready for launch in five-six months
Kyiv involved in creation of the Bank for Reconstruction of Ukraine the largest investment companies, such as BlackRock and JPMorgan Chase. Reuters writes that the bank may be ready for launch within a year, while its capital will make up ca. 1 billion USD.
BlackRock Vice Chairman Philip Hildebrand said that the company helped Ukraine in negotiations to find funds from development banks or major donor countries in order to reduce risks for private investments.
BlackRock is an international investment company headquartered in New York, USA, one of the largest investment companies worldwide and the largest in terms of assets under management.
JPMorgan Chase is the largest US bank holding by assets. It is included in Big Four of the largest US banks. It carries out activities upon investments, financial services, private capital management.
Hildebrand says, “We want to be ready to deploy at least with soft commitments from donor countries”.
He notes, in order to mobilize BlackRock assets consisting of pension funds, it will be necessary to reduce the risk up to the level of the Organization for Economic Cooperation and Development (OECD).
Hildebrand explains. “This money cannot be invested in very high-risk businesses”.
Rostislav Shurma, Deputy Head of the President’s Office, believes that the bank may be ready for launch just in five or six months.
Shurma notes, “We have at least 500 million USD in allocated capital; I think it will make up ca. 1 billion USD of liabilities”.
He adds also, among nearly 280 projects that applied to the fund, BlackRock and JPMorgan identified 25-30 projects as worthy of serious consideration.
Penny Pritzker, the US Special Representative for Ukraine’s Economic Recovery, who attended a meeting with Ukrainian President Volodymyr Zelenskyi in Davos, said there are still many questions concerning “what is possible today and what is definitely possible in the post-war period”. Mrs. Pritzker especially highlighted the fund created by JPMorgan and BlackRock. They indicated they had “early interest from some forward-thinking investors who may be willing to take on more risk than, say, a pension fund,” she said.
Earlier, President Volodymyr Zelenskyi held a meeting in Davos with the largest financial funds worldwide, including JPMorgan CEO Jamie Dimon and other senior JPMorgan executives, BlackRock top management, Bridgewater Associates, Carlyle Group, Blackstone, Dell and ArcelorMittal executives.
President expressed hope that global financial funds will help attract a large number of global investors and corporations to the Ukrainian economy.
Zelenskyi said, “This is where we see your direct role right now. I know you are actively cooperating with our team. I am looking forward to a certain result”.
In November 2022, the Ministry of Economy signed a memorandum with BlackRock on creation of a special platform to attract private capital for reconstruction of Ukraine.
Ministry of Economy assesses investments in the amount of 70-80 billion USD per year that Ukraine needs for the economic miracle.
Source – https://finance.liga.net/ua/bank/novosti/ukraina-planuie-stvoryty-bank-rekonstruktsii-z-blackrock-ta-jp-morgan-ta-kapitalom-1-mlrd