The European Investment Bank and Pravex Bank have signed a EUR30 million loan agreement to expand access to finance for small and medium-sized enterprises (SME) and mid-cap companies in Ukraine, a joint release said.
According to it, the loan is part of the efforts of the European Union initiative Team Europe to respond to the consequences of the coronavirus crisis.
“Cooperation with the EIB constitutes an important step in helping our bank reach its strategic goal to expand financing of small and medium enterprises, as well as mid-caps. This credit line will help us support our clients from the real economy, providing them with the affordable loans they need in order to mitigate the economic consequences of the pandemic crisis they have faced,” chairman of the management board of Pravex Bank Gianluca Corrias said.
Pravex Bank was founded in 1992. Its sole shareholder at the beginning of 2020 was Intesa Sanpaolo S.p.A. (Italy).
According to the National Bank, as of September 1, 2020, in terms of total assets (UAH 6.539 billion), Pravex Bank ranked 26th among 75 banks operating in the country.
The European Investment Bank (EIB) will provide additional financing, namely a EUR 20 million loan, to be on-lent to local private businesses with a focus on small and medium-sized enterprises (SMEs), expanding the increase the funding limit to EUR 280 million.
“The European Investment Bank (EIB) has signed an agreement with the State Export-Import Bank of Ukraine (Ukreximbank) to increase the funding limit of the Deep and Comprehensive Free Trade Area (DCFTA) Support Facility project to EUR 280 million,” the EIB said in a press release on Friday.
“Additional financing, namely a EUR 20 million loan, will be provided via a parallel cross-currency swap in Ukrainian hryvnia (UAH) and will be on-lent to local private businesses with a focus on small and medium-sized enterprises (SMEs),” the EIB said.
The operation is part of Team Europe’s overall response to the COVID-19 crisis, which aims to support the sustainable social and economic recovery of the region.
“Improved access to affordable finance in local currency is one of our main priorities, especially at a time when SMEs need strong support to overcome the challenges and the liquidity shortfall created by the COVID-19 pandemic,” Head of the EIB Resident Representation for Ukraine Jean-Erik de Zagon said.
Chairman of the Management Board of Ukreximbank Yevhen Metsger said that the bank has a clear goal to direct additional financing to meet the specific and urgent needs of Ukrainian companies.
The EIB is an EU institution. It is owned by the EU member states. The EIB provides long-term financing.
The EIB has been operating in Ukraine since 2007. The country accounts for 60% of the bank’s lending activities in the Eastern Partnership countries.
Ukreximbank, the sole owner of which is the state, was established in 1992.
The European Investment Bank will provide Ukraine with EUR 50 million for vaccination against COVID-19, Deputy Health Minister Ihor Ivaschenko said during a press briefing in Kyiv on Monday.
“Last week, the Cabinet of Ministers approved a president’s order authorizing Health Minister Maksym Stepanov to sign a letter amending the financial agreement between Ukraine and the EIB,” he said.
“The government has asked the EIB to redistribute part of the funds and channel them to the vaccination of the population in Ukraine. The Cabinet of Ministers has received confirmation of the provision of EUR 50 million, which will be used for the purchase of vaccines, equipment for the refrigerating chain, as well as logistics. Relevant amendments to the agreement will be signed in the near future,” the deputy minister said.
The European Investment Bank (EIB) invested over EUR 1 billion in Ukraine in 2020 alone. This represents an increase of more than 50% compared to 2019, the press service of the bank has reported.
“We delivered record investment of over EUR 1 billion in Ukraine in 2020, focusing our operations on support for conflict-affected regions of eastern Ukraine, sustainable and green infrastructure, digitalization, innovation and business recovery after COVID-19,” the press service said, citing EIB Vice-President Teresa Czerwińska, who is responsible for operations in Ukraine.
She said that Ukraine is the main recipient country of EIB investments in the Eastern Neighbourhood, accounting for more than 60% of the EIB’s lending activity in the region and supporting the European Union’s policies in its neighbourhood.
According to the report, total EIB investment in Ukraine has now reached EUR 7.5 billion.
The EIB financed small and medium-sized enterprises (SMEs) to ensure they can survive the crisis and continue to provide jobs. It also invested in infrastructure rehabilitation and development, innovation and improvements in public transport and key public services such as education and the postal service.
In 2020, the EIB supported 75 SMEs and mid-caps and helped sustain close to 18,500 jobs in Ukraine.
The European Investment Bank (EIB) will allocate EUR 270 million to the state-owned enterprise Boryspil International Airport for the implementation of an investment plan to improve infrastructure and expand capacity.
According to a posting on the bank’s website, the board of directors approved the project on December 16 this year.
The EIB document states that the total cost of this project is approximately EUR 351 million, but other sources of co-financing are not specified.
According to the financial institution, this operation is covered by the EU guarantee for EIB loans outside the EU, and the organizer of the work must ensure that any procurement procedures are carried out in accordance with the EIB procurement guidelines and EU public procurement rules.
“Major works include the rehabilitation of the western airfield system, including the western runway (18R-36L), which has been operating for more than 50 years and is in poor condition, the associated parallel taxiway, the airfield ground lighting and the instrument landing systems, plus a range of other associated airside infrastructure works,” the bank said on its website.
As reported, earlier the Ministry of Infrastructure offered the EBRD to participate in financing the Boryspil airport investment plan.
A loan from the European Investment Bank (EIB) in the amount of EUR 100 million will be directed to overhaul of 183 km of roads in Luhansk region, the State Agency for Highways of Ukraine (Ukravtodor) reported.
Funds are provided for capital and current average repairs of the sections:
– route N-26 Chuhuiv – Milove: it covers more than a hundred kilometers, which are planned to be repaired for borrowed funds, because this road connects Luhansk and Kharkiv regions;
– the road P-66 checkpoint “Demyno-Oleksandrivka” – Svatove – Lysychansk – Luhansk, which starts from the border with Russia, a 35 km section has already been repaired, the road is planned to be fully restored;
– road T-13-02 checkpoint “Taniushivka” – Starobilsk – Bakhmut, where work will begin at once on two sections, with a total length of 42 km.
“In 2020, Ukravtodor completed a record amount of road work in Luhansk region: almost 200 km were restored at the beginning of December, and work continues for another 100 km. For comparison, over the past 10 years, only 130 km of roads were renewed. This is one of the most low indicators in the country,” said head of Ukravtodor Oleksandr Kubrakov.
According to him, in 2021, thanks to the funds of international partners, Ukravtodor will restore the transport “triangle” along the Severodonetsk-Starobilsk-Svatove route with access to Troyitske in the north of the region, and in general, thanks to the Big Construction program, a modern road network in the region.
Earlier, the World Bank for Reconstruction and Development has already provided co-financing for this project in the amount of $65 million.