EBRD Unlocks €690 Million in Loans for Ukraine’s Key Industries Amid Wartime Recovery

EBRD Unlocks €690 Million in Loans for Ukraine’s Key Industries Amid Wartime Recovery

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has introduced new guarantees to unlock €690 million in loans for Ukraine’s critical industries, including food security and energy, through partnerships with Ukrainian banks such as PrivatBank, Ukrgasbank, KredoBank, and Bank Lviv. The initiative, supported by the EU’s Ukraine Investment Framework, will help businesses continue operations and modernize during the ongoing war. Part of the funding will support small and medium-sized enterprises (SMEs) with EU-compliant technology, while the EBRD’s Energy Security Support Facility will aid energy investments. This program is part of the EBRD’s ongoing commitment to Ukraine’s economic recovery.

(PRESS RELEASE) LONDON, 12-Sep-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) has announced a new guarantee program to unlock €690 million in financing for Ukraine’s critical industries. In collaboration with Ukrainian banks, including PrivatBank, Ukrgasbank, KredoBank, and Bank Lviv, the EBRD’s risk-sharing facilities will help businesses in essential sectors, such as food security and energy, continue operating amidst the ongoing conflict.

This initiative is part of the EU’s Ukraine Investment Framework (UIF), which supports economic stability and recovery efforts. The EBRD’s new facilities will cover up to €400 million in new loans from PrivatBank, €150 million from Ukrgasbank, €100 million from KredoBank, and €30 million from Bank Lviv. A portion of these loans will be directed to small and medium-sized enterprises (SMEs) for investments in EU-compliant technology and equipment, with incentives provided under the EU4Business-EBRD Credit Line.

The program will also support energy security, with PrivatBank and Ukrgasbank extending €175 million and €150 million in loans, respectively, through the EBRD’s Energy Security Support Facility (ESSF). Additionally, ProCredit Bank will benefit from a €10 million limit increase under the EBRD’s Trade Facilitation Programme, bolstering Ukraine’s export and import capacity.

The EBRD has been a key player in Ukraine’s financial sector, providing over €2.5 billion in crucial financing since the Russian invasion began. It remains the country’s largest institutional investor, with more than €4.5 billion deployed since 2022 and plans for further support through a €4 billion capital increase.

This latest move aligns with the broader Ukraine Investment Framework, part of the EU’s €50 billion Ukraine Facility, which aims to mobilize public and private investments for Ukraine’s recovery and reconstruction.

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SOURCE: EBRD