Ukraine’s Dragon Capital Eyes Bank Seized from Russian Tycoons
Ukraine’s Dragon Capital is looking to acquire a bank that was seized from Russian tycoons in a move that could help the country’s economy recover from the coronavirus pandemic. The bank, PrivatBank, was taken over by the government in 2016 after it was found to have been mismanaged by its owners. The government has been looking for a buyer for the bank since then, and Dragon Capital is now in talks to acquire it.
Background of PrivatBank
PrivatBank was founded in 1992 by two Russian tycoons, Igor Kolomoisky and Gennady Bogolyubov. It quickly became one of the largest banks in Ukraine, with more than $20 billion in assets. In 2016, the government took control of the bank after it was found to have been mismanaged by its owners. The government accused the tycoons of taking out billions of dollars in loans without proper collateral and of using the bank to finance their own businesses.
Dragon Capital’s Interest in PrivatBank
Dragon Capital is a Ukrainian investment firm that has been active in the country since 1994. It is one of the largest and most successful investment firms in the country, and it has been looking to expand its presence in the banking sector. The firm is now in talks to acquire PrivatBank, which would give it a foothold in the banking sector and help it to diversify its investments.
Benefits of PrivatBank Acquisition
The acquisition of PrivatBank by Dragon Capital would be beneficial for both the firm and the country. For Dragon Capital, it would give the firm a foothold in the banking sector and help it to diversify its investments. For Ukraine, it would help the country’s economy recover from the coronavirus pandemic. The acquisition would also help to restore confidence in the banking sector, which has been shaken by the government’s takeover of PrivatBank in 2016.
Potential Challenges
There are some potential challenges that Dragon Capital may face in its attempt to acquire PrivatBank. The first is the cost of the acquisition. The government has set a high price for the bank, and it is unclear if Dragon Capital will be able to afford it. The second is the potential for political interference. The government has been accused of using the bank as a political tool in the past, and there is a risk that it could do so again if Dragon Capital acquires the bank.
Outlook
Dragon Capital’s attempt to acquire PrivatBank is a positive sign for Ukraine’s economy. The acquisition would help to restore confidence in the banking sector and could help the country to recover from the coronavirus pandemic. It is unclear if Dragon Capital will be able to afford the acquisition, but if it is successful, it could be a major boost for the country’s economy.