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Credit Agricole Ukraine signed a €50M risk sharing agreement with the EBRD as part of the Sustainability and Livelihoods program. The bank noted that this will allow it to support capital investments by micro, small, and medium-sized enterprises in modernizing technologies and equipment. Companies will be able to receive technical assistance with EU funds and grant support in the form of investment incentives after the completion of investment projects. The focus will be on key sectors in the Ukrainian economy,

The state budget of Ukraine received a $400M loan under Great Britain’s guarantee through the World Bank Trust Fund. The funds are part of the fifth financing round of the PEACE in Ukraine project. The money will be used for pension payments and salaries for medical workers. The loan is provided on preferential terms: the repayment period is 19 years with a 5-year grace period. The total financial aid from the UK since February 2022 now reaches $2B. In addition,

The Board of Directors of the EBRD recommended to the Bank’s managers to approve a capital increase of €4B to ensure investments in Ukraine, the bank reported. This is the first step to increase the EBRD’s share capital, which currently stands at €30B. It should be formally approved by the end of 2023. This will be the third capital increase in the EBRD’s history. The previous two took place in 1996 and 2010. The increase decision is expected to take

The UK will participate in developing and implementing a pilot project by the EBRD to provide insurance against war risks in Ukraine. The EBRD project envisages creating a new fund to promote the development of the international reinsurance market and insurance of property and trade risks, including insurance of goods in transit or warehouses. The signed statement of intent demonstrates the UK’s support for the EBRD project’s continued technical and administrative development. The UK will also contribute to increasing international

According to EBRD Director for Eastern Europe Matteo Patrone, state-owned enterprises will be the primary recipients of funding for recovery, so it is essential for Ukraine to complete its corporate governance reform. Namely, the Ukrainian Parliament must adopt the relevant legislation. According to Patrone, the condition for providing financing from donors and foreign private investors will be implementing the best global management practices to ensure the efficiency and transparency of state enterprises’ activities. Patrone added that implementing such systems will

Russian Forbes reported that the EBRD sold its 5.3% stake in the Moscow Stock Exchange, receiving only a third of its market value – ₽7.28B ($76.3M), instead of ₽22.8B. The bank had to agree to sell at a 60% discount, when the average is 50%, and pay a 20% exit tax. This package of shares will be bought by the Softline IT group, which, after the beginning of Russia’s aggression against Ukraine, was divided into a Russian portion and a

The IFC, EBRD, and DFC will provide Ukrainian agricultural holding MHP with $480M for debt refinancing and maintenance of current activities. As reported by the IFC, it will provide $30M for the modernization and development of a complex for processing organic waste into electricity and a $100M loan to increase financial stability and refinance Eurobonds. The EBRD loan for $100M is provided to ensure MHP’s financial stability. The loan will help the company refinance its Eurobonds, as it has limited

For this purpose, the European Bank for Reconstruction and Development is working on a plan to increase its capital, EBRD President Odile Renaud-Basso said. The bank said in May that it plans to ask shareholders to raise capital by up to €5B by the end of this year. The war, she said, is moving Ukraine away from its traditional dependence on heavy manufacturing, which Russia has targeted, to the technology and digital solutions it uses in the military industry. Energy

As the Minister of Economy of Ukraine, Yulia Svyridenko, reported after the meeting with the President of the EBRD, Odile Renaud-Basso, the bank is ready to participate in financing the demining of agricultural lands and to develop a special financial product to provide working capital for manufacturers of special demining equipment. The parties also discussed cooperation between the EBRD and development finance institutions (DFI) to coordinate investment efforts in Ukraine, particularly in the private sector. The parties also discussed increasing

The European Bank for Reconstruction and Development has maintained its May growth forecast for Ukraine’s economy for 2023-2024. According to the bank, Ukraine’s GDP is expected to grow by 1% in 2023, reflecting a sharp decline in GDP in the first quarter compared to last year. However, this will likely be followed by a 3% increase in 2024. At the same time, the EBRD changed the forecast for the region where it operates (Central Europe and Central Asia). GDP growth

PrivatBank and the European Bank for Reconstruction and Development have started cooperation on a risk-sharing program. As part of the program, Ukrainian entrepreneurs from critical industries will receive up to €240M, the Ukrainian bank reported. According to the signed agreement, the EBRD guarantees €60M. The unfunded risk-sharing instrument covers up to 50% of the credit risk. The advantages of the program are the opportunity to receive financing and develop, update, or strengthen your own business through investments in more ecological

The EBRD is supporting food security and other critical industries in wartime Ukraine with a new risk-sharing agreement for KredoBank and opening a TFP limit for guarantees and cash advances to enhance the Ukrainian bank’s product offerings. The EBRD will provide a €25M unfunded risk-sharing instrument, which covers 50% of the credit risk of newly originated financing provided by KredoBank up to a total value of €100M, subject to a portfolio cap of 50%. The risk-sharing facility will help KredoBank

Ukraine and the World Bank signed a new agreement on ways to attract $500M in credit financing under Britain’s guarantee. According to the head of the Ukrainian government, Denys Shmyhal, the funds will be used for rescuer and teacher salaries, social benefits, and payment of medical services under the medical guarantee program. Also, through the WB Ukraine will receive a $1.25B grant from the US and a $15M grant from Finland. In addition, the EBRD will provide €600M in support

During URC2023, 19 international organizations led by the EBRD signed a memorandum on creating a platform for joint investments in Ukraine. The G7 development financing institutions agreed to develop a Ukrainian investment platform in May, but since then the number of participants have doubled. In addition to the EBRD, which is the largest institutional investor in Ukraine, the memorandum was signed by representatives from the financial sectors of Great Britain, Japan, Italy, Canada, France, the US, Germany, Belgium, Spain, Finland,

However, the attractiveness of this sector of Ukraine’s economy will increase only after the war, said Harry Boyd-Carpenter, Managing Director of  Climate Strategy and Delivery at the EBRD. He added that Ukraine had an extraordinary boom in RES of 5 GW of renewable energy that was financed by private sources before the war. At the same time, money from the public sector will also become available to Ukraine. Still, it should be directed primarily to the development of nuclear energy

EBRD president Odile Renaud-Basso said that several memoranda and projects will be signed into effect this week at a conference on Ukraine’s restoration – designed to strengthen energy security and support the country’s agricultural and financial sectors. Some documents will concern hydropower, considering the Kakhovka HPP disaster, as well as the current situation in the electricity and gas sectors. The bank will also support food security and the private sector’s sustainability. On June 21, Renault-Basso will sign a memorandum of

The EBRD provided funds under state guarantees for implementing the Project of Extraordinary Support of the Ukrainian Railway. The money will be directed to the purchase of locomotives, upgrades for the country’s railway links with the European Union to its west, and provide financial support for Ukrainian Railways (UZ), which is necessary to ensure stable operation. The implementation of the project is planned to start in July this year. As a result of cooperation between UZ and the EBRD over

The bank reported that Norway had allocated NOK 1.5B to support the activities of the EBRD to strengthen energy security in Ukraine, the bank said. This grant continued Norway’s NOK 2B (€195M) grant to Naftogaz in November 2022. In turn, within the framework of cooperation with the EBRD, the Netherlands allocated €40M to support the bank’s work in Ukraine. This is the next contribution after the €72M grant to support a loan for Ukrenergo. The Netherlands also provided €25M in

According to the European Bank for Reconstruction and Development, the growth forecast is at 1% this year and 3% in 2024, assuming the war continues throughout this period at the same intensity as at the start of 2023. The forecast notes that after an unprecedented 29.1% drop in GDP in 2022, output in real terms has stabilized at around 70% of pre-war levels. According to the EBRD, inflation eased to 21.3% year-on-year in March 2023 and is likely to continue

Development finance institutions (DFIs) of the Big Seven countries – JBIC and JICA (Japan), CDP (Italy), FinDev Canada (Canada), Proparco (France), DFC (USA), BII (Great Britain), DEG (Germany) and the EBRD have agreed on the creation of a Ukrainian investment platform in Tokyo. After creating the DFI platform, the G7 and the EBRD plan to expand it to other organizations investing in Ukraine in the future. The European Development Finance Institutions (EDFIs) have been invited to join this process and,