KYIV, July 17 – The European Bank for Reconstruction and Development intends to provide pre-privatization financing to state telecoms monopoly Ukrtelekom before the end of this year, the press service of the EBRD”s Ukrainian office quoted Peter Reiniger, director of the EBRD”s Industry and Commerce business group, as saying.
Reiniger also expressed satisfaction with the progress of efforts to privatize Ukrtelekom, as confirmed by parliament”s July 13 approval of a draft law on privatizating of Ukrtelekom.
According to the draft law, which needs to pass one more reading when the Rada reconvenes in September, Ukrtelekom may be sold only to a Ukrainian or a foreign industrial investor with operating experience in the telecommunications industry.
The law preserves ownership of a 50 percent plus one share in Ukrtelekom for the state and permits the sale of at least 25 percent of the company.
EBRD First Vice President Charles Frank said in March that the bank was prepared to assist in the preparation for privatization of Ukrtelekom. But he declined to state the volume of financing that the bank might provide, arguing that the relevant projects were still in the preparatory stage.
Ukrtelekom presently has an authorized capital of Hr 2.5 billion.
Ukrtelekom reported a pre-tax profit of Hr 717 million in 1999, when it provided services worth Hr 2.7 billion to customers, which reflects a 20 percent increase over the value of services provided in 1998.
