Spain reaffirms strategic partnership with EBRD to support Ukraine’s recovery

Spain reaffirms strategic partnership with EBRD to support Ukraine’s recovery

(IN BRIEF) Spain and the European Bank for Reconstruction and Development (EBRD) are working together to improve Ukraine’s food security and municipal sector. Spain has committed to providing guarantees worth up to €100 million to support EBRD’s operations in Ukraine’s municipal sector and to address food security issues in Ukraine and other EBRD investee economies affected by the war on Ukraine. EBRD’s investments are also helping to prevent a global food crisis by addressing risks to the supply of essential foods, particularly in economies highly dependent on food imports. The EBRD is also providing emergency liquidity to municipalities affected by the war to ensure the continued provision of essential services like district heating, water and wastewater, solid waste, and public transport, which is crucial to safeguarding livelihoods and essential public services for citizens, including internally displaced people.

(PRESS RELEASE) LONDON, 14-Apr-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) and the government of Spain are cooperating to shore up Ukraine’s food security and its municipal sector.

Spain, a founding member of the EBRD and a strategic partner, signed an agreement to provide guarantees worth up to €100 million to support the Bank’s operations in Ukraine’s municipal sector, as well as for food security in Ukraine and other EBRD investee economies affected by the war on Ukraine.

Boosting agricultural production and securing the agricultural value chain in Ukraine are critical to ensuring food security. The EBRD’s investments are also helping to avert a global food crisis by addressing risks to the supply of vital foods, particularly to economies that are highly dependent on food imports (such as those in the Bank’s southern and eastern Mediterranean region).

In addition, many cities and municipal facilities are being severely affected by the war. The EBRD is focused on providing emergency liquidity to hard-pressed municipalities to ensure their continued operation and the uninterrupted provision of essential services, such as district heating, water and wastewater, solid waste and public transport. This liquidity support helps safeguard livelihoods and essential public services for citizens, including internally displaced people.

EBRD President Odile Renaud-Basso said: “We are truly delighted and thankful for this very important contribution from Spain, one of our strongest partners over the years. These guarantees will allow the Bank to tackle the crucial issue of food security in Ukraine and beyond and continue its support for Ukrainian municipalities, now and when the reconstruction of the country starts.”

First vice-president and EBRD Governor Nadia Calviño, underlined: “This agreement shows Spain’s strong commitment to supporting Ukraine and will improve the lives of Ukrainian citizens by funding investments to ensure food security and the needs of municipalities most affected by the war.”

Spain joins a number of donors that have responded through the EBRD to the financial and technical support needs brought about by the war on Ukraine. Some €1.4 billion has been generously made available to date for operations aimed at keeping the Ukrainian economy going and ensuring energy security, adequate transportation and support for small businesses, among other things.

The EBRD is supporting Ukraine and its real economy at a time when the country needs it most. The Bank has committed to providing €3 billion of financing over 2022-23 in partnership with international donors to help keep Ukraine’s businesses and economy functioning. In 2022, the EBRD deployed €1.7 billion in support of Ukraine. It also mobilised €200 million directly from partner financial institutions. The Bank has been operating in Ukraine for more than three decades and is the largest institutional investor in the country.

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SOURCE: EBRD