EBRD may cover 50% of risk for Ukrainian OTP Bank's 200-mln euro loans

MOSCOW. Oct 15 (Interfax) - The European Bank for Reconstruction and Development (EBRD) is looking into the possibility of providing 60 million euros to the Kiev-based OTP Bank to cover 50% of the credit risk under new loans taken by private agricultural companies and critical industries for 200 million euros, Ukrainian media reported, quoting the EBRD as saying in a statement.

The funding is expected to be provided in three disbursements, including the two for 22.5 million euros, each of which will cover 75 million euros, and one for 15 million euros to cover 50 million euros of the loan portfolio, it said.

Two disbursements (22.5 million euros and 15 million euros) are still not coordinated, it said.

The EBRD Board of Directors will review the project on November 20, 2024.

At the same time, the program includes a sub-limit of up to 40 million euros for financing small and medium-sized enterprises (SMEs) under the EU4Business initiative, for capital investment, upgrading technology and equipment to meet EU standards, including investment in green technology (at least 70% of the sub-limit).

Eligible borrowers will also receive EU-funded technical assistance and grant support in the form of investment incentives upon completion of their projects.

As of September 1, 2024, OTP Bank ranked 11th with UAH 112.12 billion in terms of total assets among 62 banks in the country, the National Bank of Ukraine said. The financial institution's net profit for the first eight months of this year totaled UAH 3.48 billion.