As expected, the banking privatization steering committee on Monday approved the release of KB’s information memorandum to potential investors; the memorandum should be sent out over the next few days. According to the Ministry of Finance spokesman, the information memorandum does not contain any quantification of the government guarantees, only a technical description of their nature (as expected). The size of the guarantees will be determined in negotiations with investors at a later stage of privatization (end of 2000/early 2001, we estimate).
Investors who receive the memorandum and who are interested must submit preliminary offers by October. A narrowed-down list of serious investors will then submit binding offers by December. Subsequent one-to-one negotiations should result in the government picking a winner by April 2001.