State Oschadbank and the European Bank for Reconstruction and Development EBRD have agreed on the terms of a subordinated loan with the possibility of entering the capital of this bank.
“On October 25, Oschadbank and the European Bank for Reconstruction and Development (EBRD) signed a mandate letter, backed by the Ministry of finance of Ukraine, on terms of future cooperation and providing EBRD long-term financing in the form of a subordinated loan with the possibility of conversion into stocks of the Oschadbank up to €100 million,” the Ministry of finance of Ukraine reports.
Oschadbank and EBRD have agreed on the terms of cooperation within the framework of a memorandum of understanding. This decision was made as part of Oschadbank's development strategy until 2024. Also, the fulfillment of the terms of the memorandum is beneficial for the state program for reforming banks until 2025. The program creates conditions for reducing government participation in the banking sector from 60% to 25%.
Signing parties: chairman of the management board of the Oschadbank Serhii Naumov, and EBRD managing director for Eastern Europe and the Caucasus Matteo Patrone.
EBRD investments in 505 Ukrainian projects amount to more than €1 billion.
The EBRD's involvement is particularly active in:
- Reformation projects;
- Increasing energy efficiency and energy security;
- Support for agriculture and small business;
- Industrial projects.