State-owned “Ukrgasbank” provided “Karpaty” Experimental Mechanical Plant (OMZ) wagon building enterprise (Lviv region) with a two-year loan to the amount of UAH 170 mln, including UAH 60 mln granted under the state program “Available loans 5-7-9%”, as press-service of the bank informed.
According to a press release on Monday, such support from Ukrgasbank allowed the company to provide itself with orders, maintain its staff (more than 600 employees) and stable tax revenues to the budget.
“Since the beginning of the war, Ukrgasbank continues to support the national railcar industry by providing financing for the working capital of OMZ Karpaty LLC,” the statement said.
According to the bank, since the beginning of 2023, OMZ Karpaty has built 392 cars, including 291 grain cars, 35 gondola cars, 64 cement cars and two platforms. The company is also developing a new direction – repair of diesel locomotives.
Besides, the production is diversified in the direction of press-compactors production, which are exported to the EU.
The main activities of OMZ Karpaty LLC are construction of freight cars, repair of rolling stock, production of tank containers, tanks, metal structures and hydraulic elevators.
According to the resource opendatabot, in 2022 the company’s income increased by 2.9 times against 2021, to 1 billion 231.5 million UAH, net profit was 13.4 million UAH against a loss of 2.67 million UAH a year earlier.
According to the NBU on May 1, 2023, Ukrgasbank with assets of UAH 164.38 billion ranked 5th among the 65 operating banks in the country.
The European Bank for Reconstruction and Development (EBRD) is lending EUR10.6 million to the municipal enterprise (CE) Electrotrans (Khmelnitsky) to finance the purchase of new trolleybuses, as well as equipment for maintenance and diagnostics, according to a press release from the bank.
The EBRD loan is part of a financing package that also includes investment grants from the EU Neighbourhood Investment Platform of up to EUR2.75 million and up to EUR1.7 million from the EBRD’s Special Crisis Response Fund, which receives a contribution from the U.S. government, according to the statement Friday.
The loan and grants will be used to purchase new trolleybuses with remote monitoring systems, spare parts and service equipment.
In turn, the city will cover the cost of installing surveillance cameras inside the trolleybuses and upgrading the trolleybus stops, traction substations and trolleybus depot in the amount of EUR1.5 million.
The press release reminds us that the project is part of the EBRD’s Green Cities program, which Khmelnitsky joined in 2019. The first project, signed in October 2020, concerned improving solid waste management.
“Both projects are extremely important to the residents of Khmelnitsky: the ongoing project – to improve solid waste management – and the project to purchase new trolleybuses. We are glad that we can implement them exactly with the EBRD, our long-term partner, despite the war caused by Russian aggression,” the press service quotes Khmelnitsky Mayor Alexander Simchyshyn, who represented the city in Warsaw at the signing of the agreement with EBRD Managing Director for Sustainable Infrastructure Development Nandita Parshad.
As reported, earlier Simchyshyn noted that up to 45 low-floor trolleybuses are planned to buy with EBRD funds and grants, but at the same time, their number will depend on the cost of trolleybuses, which has increased.
The EBRD press service states that after the full-scale invasion of Ukraine by Russia, Khmelnytskyi faced a large flow of internally displaced persons (IDPs), which put a strain on city services.
The EBRD resumed work with Khmelnitsky in June, adding an IDP needs assessment to the Green City Action Plan, with funding provided by the Swedish government.
The EBRD’s Green Cities program was founded in 2016. Since then, it has helped more than 50 cities on three continents, with more than EUR5 billion spent on its support.
In Ukraine, Lviv, Kiev, Kryvyi Rig, Dnipro, Khmelnitsky joined it, among others.
As it was reported, the EBRD together with donors undertook to provide financing in the amount of EUR3 billion for support of functioning of business and economy in Ukraine in 2022-2023. In 2022, the bank allocated EUR1.7bn to support Ukraine and attracted EUR200m from partner financial institutions.
In February 2023 Ukrainian banks issued 126 mortgage loans totaling UAH 169.8 million, which is five times less than in February 2022 by number of such loans and by 69% – by volume, according to results of a monthly survey of the National Bank of Ukraine (NBU).
According to it, four banks reported on the issuance of mortgages. Loans were mainly issued under state programs to support lending exclusively in the secondary market of real estate.
The weighted average effective rate on mortgages in February was 8.3%, while in January it was 7.5%.
According to the survey, the most loans were granted in Kiev and the region – 51 contracts totaling 77.5 million UAH (46% of the total amount), in Rivne – 10 contracts for 12.5 million UAH (7%) and in Vinnitsa region – seven contracts for 9.8 million UAH (6%).
European Bank for Reconstruction and Development (EBRD) will issue long-term loan of EUR42 mln to support activities of Polish ceramic tile and sanitary ware producer Cersanit S.A. in Ukraine and Poland.
According to an EBRD press release on Tuesday, the financing will be used to offset the impact of the write-down of Russian assets, the war in Ukraine and a fire at one of Cersanit’s facilities in Poland. In addition, the manufacturer is expected to play an important role in rebuilding Ukraine’s infrastructure damaged by the Russian invasion.
According to the report, the development project includes ramping up production of ceramic tiles and sanitary ware and completing investments in large format tile production in Ukraine, as well as renovating the acrylic products plant in Poland, expanding capacity and improving energy efficiency of the plants. The total amount of the project is EUR120 million.
“These investments not only help the economies of both countries by supporting a dynamic local producer of goods that will be an important component of Ukraine’s recovery, but also retain human capital by preserving key jobs. The EBRD remains committed to financing other investments in Ukraine and neighboring states affected by the war,” EBRD Vice President Alain Piloux was quoted as saying in a statement as signing the loan agreement with Cersanit in Warsaw.
The loan is part of the Resilience and Livelihoods Facility (RLF) program opened by the bank after the war.
As it was reported, the EBRD together with donors undertook to provide financing in the amount of EUR3 billion to Ukraine during 2022-2023 to support the functioning of business and economy. In 2022, the bank allocated EUR1.7 billion to support Ukraine and attracted EUR200 million from partner financial institutions.
Cersanit S.A. is one of the leading manufacturing companies with Polish capital on the European market. The main activity of the company is production and sale of products for finishing and equipping bathrooms.
As stated on the Cersanit website, the group has four plants in Poland and one in Germany, Romania and Ukraine. The company’s Ukrainian plant was launched in 2009 in Zhytomyr region. The capacity of the company is 12 million square meters of ceramic tiles and up to 2 million units of sanitary ware a year.
According to the financial statements of Cersanit Invest LLC, in 2022 the company received a net loss of 964.5 million UAH, while the revenue amounted to more than 2.1 billion UAH.
According to Opendatabot, the owner of the company is listed as Cersanit JSC, the beneficiary is Michal Andrzej Solowow (Poland).
Ukraine’s state budget on Friday received a CAD$2.4 billion (about $1.8 billion) loan from Canada on favorable terms under a second supplementary agreement, the Ukrainian Finance Ministry said.
“Canada has once again demonstrated that it is a reliable partner of Ukraine: today we received CAD2.4 billion, which will be used primarily to finance priority state budget expenditures,” Finance Minister Serhiy Marchenko said in a statement.
The Ministry of Finance specified that the additional credit was granted for 10 years with the interest rate of 1.5% per annum. The funds are provided through the mechanism of the IMF administrative account.
As reported, the external needs in financing the state budget of Ukraine in 2023 amount to about $ 38 billion, and after the recent increase of expenditures by 537 billion UAH they are estimated already at $ 42.5 billion.
According to the Ministry of Finance, by March 29, financing from international partners had already reached $9.17 billion by the beginning of this year, compared to $32.14 billion for the whole of last year. That includes $3.5 billion in grants from the U.S. this year, $4.85 billion in loans from the EU and another $495 million in loans and guarantees from Britain.
Domestic funding from government bonds this year amounted to $3.43 billion.
Canada is going to provide a $1.8 billion loan to Ukraine through the International Monetary Fund (IMF) in budget year 2023, CBC TV channel reported with reference to the country’s draft budget.
“Canada will extend a $2.4 billion Canadian dollars ($1.8 billion) loan to Ukraine in the coming budget year. The measure is contained in the latest federal budget, tabled in Parliament on Tuesday by Finance Minister Chrystia Freeland,” the report said.
The loan for Ukraine will be distributed through the IMF. It is intended to cover the budget deficit and pay for social services, including medical services.
According to the TV channel, separately, the Canadian federal budget also announced CAD 84 million (almost $62 million) in additional direct humanitarian aid for Ukraine in the coming fiscal year – money which will be used for mental health services, the removal of mines and other measures. The money will come out of the existing budget at Global Affairs Canada.
