A financial corporation and, at the same time, an agency of the US federal government, Development Finance Corporation, has decided to invest in Ukrainian businesses. The amount of financing ranges from $1 million to $1 billion for each of the projects, regardless of the participation of an American investor.
A feature of this decision is that American state-owned companies are usually ready to support only those projects abroad where US citizens participate. However, this time, despite the hostilities and the absence of an American participant, the DFC is also ready to cover credit risks.
"In this scenario, the lender for the Ukrainian borrower is a private bank, but the borrower buys credit risk insurance from the DFC. Thus, the conditions for the loan become more profitable - the borrower will receive a lower rate and a longer term for attracting money," deputy economy minister Olexandr Griban.
DFC is ready to take on military risks, provided that the company receiving funding has passed a financial audit and compiled a business plan that meets the requirements of the international level. The instrument from DFC partially complies with the conditions of MIGA investment insurance. However, the insurance cost depends on the business project's needs.
