Business news from Ukraine

EBRD to cover up to 50% of risk on new loans to Ukrgasbank

13 February , 2024  

The European Bank for Reconstruction and Development (EBRD) intends to assume up to 50% of the risk on newly issued loans to state-owned Ukrgasbank (Kyiv) totaling the equivalent of EUR50 million.

According to the EBRD on Monday, its board of directors planned to consider this project at a meeting on February 9, but has not yet made a final decision.

It is noted that the guarantee financing is planned to be provided in two equal tranches, with the second tranche not yet agreed, and the total amount of EBRD financing is EUR 12.5 million.

The project also includes a sub-limit of up to EUR 10 million, or 20% of the covered portfolio, to finance long-term investments by micro, small and medium-sized enterprises (MSMEs) to modernize their technologies and equipment in line with EU standards, including investments in green technologies (70% of the sub-limit), and to increase their competitiveness.

According to the EBRD, the facility will be mainly used to support lending to Ukrainian private companies operating in primary and secondary agriculture, as well as other critical sectors such as food processing, retail, and logistics.

According to the National Bank of Ukraine, as of December 1, 2023, Ukrgasbank ranked 5th in terms of assets (UAH 180.85 billion) among 63 banks operating in the country.

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