Ukraine: EBRD guarantee to enable €40 million of new lending
The European Bank for Reconstruction and Development (EBRD) is providing a €10 million unfunded portfolio risk-sharing instrument to Ukreximbank, the State Export-Import Bank of Ukraine, to unlock €40 million of new financing for the private sector amid the ongoing war in the country.
The EBRD’s facility will cover up to 50 per cent of Ukreximbank’s credit risk on newly issued sub-loans worth €40 million to private businesses operating in Ukraine.
The facility will enhance Ukreximbank’s lending capacity, enabling the lender to provide much needed funding to Ukrainian businesses operating in critical industries such as agriculture, manufacturing, construction, transport and pharmaceuticals.
This will support companies to continue their operations and safeguard livelihoods, which is crucial for fostering economic resilience and enabling Ukraine to rebuild in the aftermath of the war.
Up to 20 per cent of the risk-shared loans will support private micro-, small and medium-sized businesses’ (MSMEs’) long-term investments in EU compliant and green technologies, improving Ukrainian MSMEs’ competitiveness on domestic and foreign markets.
Eligible sub-borrowers will also receive EU-funded technical assistance and investment incentives upon completion of their investment projects under its EU4Business initiative.
The EBRD has deployed €4 billion in Ukraine since the start of the war. As well as support for the private sector, its strategic priorities in the country are supporting energy security, vital infrastructure, food security and trade.
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