Business news from Ukraine


The loan portfolio of banks in July-August 2020 increased by 3%, while in the first half of the year it decreased by 5%, Governor of the National Bank of Ukraine (NBU) Kyrylo Shevchenko has said.
“In July and August, the banks really lent to the population much more actively than in the first half of the year. Indeed, in the first half of the year we saw a reduction in the loan portfolio by 5%. In the two months, the portfolio grew by about 3%,” he said during a press briefing by the National Bank.
According to him, over the past three months, the banks have lowered lending rates, in particular, rates on loans for businesses are below 10%, while in the first half of the year the average rate on such loans was 11%.
“Regarding the rates for the population, unfortunately, there is no such a trend, with the exception of rates on mortgage loans. Rates on mortgage loans are average, if we started the year at a level of almost 20%, then in July they were about 13% and in August we expect average rates on mortgage loans to be even lower,” Shevchenko added.
In addition, he noted a decrease in the volume of non-performing loans (NPL), in particular, over the past two months, their share decreased by 1.5%, excluding the revised statistics for August.

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The European Bank for Reconstruction and Development (EBRD) a part of the Green Cities Framework 2 will provide a senior loan of up to EUR 28.5 million to Communal Enterprise Spetskomuntrans to finance the rehabilitation and modernisation of solid waste infrastructure in the City of Khmelnytsky estimated at EUR 36.5 million.
The decision was made by the bank’s board on September 2, EBRD Senior External Relations Advisor Anton Usov has told Interfax-Ukraine.
The senior loan split into several tranches co-financed by up to EUR 5.0 million investment grant from the EU Neighbourhood Investment Platform and up to EUR 3.0 million local contribution.
The phase I of the project will address the city’s urgent investment needs with respect to the rehabilitation of the existing landfill, the construction of a new engineered sanitary landfill in compliance with the EU standards adjacent to the old one, the acquisition of new landfill equipment to ensure sustainable operation of the new landfill, and improvements of the solid waste collection and transportation systems co-financed from the city’s budget.
The phase II of the project includes the construction of a new material recovery facility for non-organic waste and a separate composting facility for pre-sorted organic waste that will reduce the share of solid waste going to the landfill by promoting recycling and providing a modern solid waste management infrastructure with respect to sorting and composting. The project will ensure that a long-term, sustainable solid waste management strategy is properly implemented.

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The European Investment Bank (EIB) within the framework of the Ukraine Urban Public Transport project is providing Lviv with EUR 12 million loans for the purchase of ten new low-floor trams.
According to the press service of the Ministry of Infrastructure of Ukraine, the relevant agreement between the bank, the Ministry of Infrastructure and the city authorities was signed on September 2.
According to the ministry, another EUR 8.8 million will be additionally financed from the city budget.
Head of the European Investment Bank representative office in Ukraine Jean-Erik DE ZAGON said the EIB loan for new trams in Lviv will contribute to the development of environmentally friendly and sustainable transport. As representatives of the climate-oriented EU bank, they are convinced that a well-functioning tram network can make a significant contribution to reducing the number of cars on roads and thus reducing environmental pollution and mitigating climate change.
Lviv Mayor Andriy Sadovy also supported this position.
“We have a clear position – electric transport should dominate. First of all, these are environmental issues, because 30% of all diseases in the world are caused by air quality. And secondly, it is financially profitable. In addition, low-floor trams and trolleybuses manufactured here, in Lviv, contribute to comfortable movement around the city for all its residents, including those with limited mobility,” he said.

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The Cabinet of Ministers intends to attract a $100 million loan from the International Bank for Reconstruction and Development (IBRD) for the Eastern Ukraine: Reconnect Recover Revitalize (3R) Project.

In addition, the Cabinet of Ministers approved the composition of the delegation to participate in negotiations with the IBRD.

According to the draft resolution, the loan is planned to be attracted for a period of 27 years with a grace period of 12 years with a floating rate of LIBOR plus a variable spread.

According to the data on the website of the Ministry for Reintegration of the Temporary Occupied Territories, the project envisages investments in the resumption of agriculture through the implementation of private agricultural sub-projects aimed at overcoming the consequences of the armed aggression of the Russian Federation on the territory of Luhansk region controlled by the government of Ukraine.



The state-owned Ukreximbank (Kyiv) provided a EUR 500,000 loan to Nutsi LLC, which specializes in the sale of walnuts and pumpkin seeds, to export the 2020 harvest, the bank’s press service said on Thursday.
According to the bank, Nutsi has an extensive network of points to purchase nuts and seeds throughout Ukraine and exports raw materials throughout Europe.
According to the unified public register of legal entities and private entrepreneurs, Viacheslav Yanchiy is the ultimate beneficiary of Nutsi LLC, the size of the charter capital of the company is UAH 44,000.
Ukreximbank was established in 1992, the only owner is the state.
According to the National Bank of Ukraine, as of July 1, 2020, in terms of total assets, Ukreximbank ranked third (UAH 226.729 billion) among 75 banks operating in the country.

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The European Bank for Reconstruction and Development (EBRD) has provided Olam International Ltd. (Singapore) with a $200 million loan to finance the company’s working capital needs in Ukraine, Turkey, Egypt, Georgia and Poland.
“The EBRD loan will finance purchases of agricultural commodities such as hazelnuts, dry dairy products, grain and onions in selected countries of operation. Local subsidiaries of the company will take on the processing, storage and distribution of these goods,” the bank said on its website.
“The European Union and the TaiwanBusiness-EBRD Technical Cooperation Fund will provide donor support for the development of new methodologies and processes for climate-related risk management and stress testing in Egypt and Turkey,” it says.
Olam International is a major food and agricultural products manufacturer headquartered in Singapore.
Olam International Ltd. 53.4% is owned by Temasek Holdings, 17.4% by Mitsubishi Corporation, 7% by Kewalram Chanrai Group and 6.3% by the Olam management.
Olam Ukraine LLC was founded in 2005 and is currently the leading supplier of cocoa beans and cocoa products to large local confectioners, as well as a major exporter of grain and milk powder products.