EBRD Lends to the Ukrainian State Bank for €50 Mln

by Meifan Honcharuk
Friday, June 24, 2023
EBRD Lends to the Ukrainian State Bank for €50 Mln

Of these, €25 mln will be covered by the EBRD Crisis Response Fund

The Ukrainian state bank Ukreximbank and the European Bank for Reconstruction and Development have been cooperating for 30 years. During a full-scale war, the government entrusted Ukreximbank with the authority to support our country's economy by sponsoring key sectors: agriculture, fuel and energy, logistics, the energy sector, and heavy industry. Thanks to a €50 million loan from the EBRD, Ukreximbank will overcome the lack of resources and be able to support private business in Ukraine, thereby strengthening our country's economy.

The loan agreement was signed for Ukraine Recovery 2023 and is provided on the following terms: the loan is provided under the Resilience and Livelihood Program, and €25 million in total will be offset by the EBRD Crisis Response Fund's first loss risk coverage.

"Ensuring financing through reliable partner financial institutions such as Ukreximbank, despite the war, so that the private sector and municipalities can continue to operate, provide services and support the economy, is a key task of the EBRD's mission in the country," Matteo Patrone, managing director of the EDB in the countries Eastern Europe and the Caucasus.

The Russian war took a heavy toll on the Russian economy. Factories were destroyed, 35% of the population left for other countries, the scale of private business fell by 5%. The economy is expected to fall on 30% in 2022.

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