EBRD to provide Krivoi Rog, Ukraine with 12 mln euro loan

MOSCOW. June 18 (Interfax) - The European Bank for Reconstruction and Development (EBRD) will provide a loan of 12 million euro to support the liquidity of the city of Krivoi Rog (Dnepropetrovsk region of Ukraine) and its key municipal enterprises.

Ukrainian media reported, citing a statement on the EBRD website, that the decision to allocate financing was approved by the bank's board of directors.

The project description states that the recipients of the funds are the City Trolleybus, Krivoi Rog Trolleybus and High Speed Tram municipal enterprises, as well as Krivbasvodokanal (water supply) and Krivorozhteploset (heating supply).

The loan funds will support the vital utility infrastructure of Krivoi Rog to cover current and operating costs, as well as maintenance costs. The funds can also go toward debt service on existing projects with the EBRD if necessary.

The loan will receive a guarantee from Spain, which will cover 40%, the statement said.

The EBRD previously provided loans to support the liquidity of Dnepr and Lvov in amounts of 25 million euro each.

The EBRD also recently concluded pre-financing agreements for six municipalities totaling 143 million euro during the Ukraine Recovery Conference in Berlin.