The European Commission announced the signing of a guarantee agreement with the IFC to support investment for Ukraine’s recovery.
As part of the agreement, the EU will provide the IFC, a member of the World Bank Group, with financial guarantees of up to €90M to support investment in Ukraine under IFC’s Better Futures Program (BFP). Private investment under the program is expected to reach more than €500M across various sectors, including critical infrastructure and goods production, promoting decarbonization and preserving livelihoods.
The European Fund for Sustainable Development Plus (EFSD+) is part of the EU’s investment framework. It supports public and private investment in partner countries worldwide by providing financial guarantees, blended finance, and technical assistance to promote inclusive economic development.
Financial guarantees under the EFSD+ are legally binding agreements whereby the EU agrees to pay an appropriate amount in the event of financial losses that creditors may face.