EBRD to share 50% of risks under with loans issued by Ukraine's Credit Agricole Ukraine, Kredobank

MOSCOW. Oct 21 (Interfax) - The European Bank for Reconstruction and Development (EBRD) will share 50% of credit risks associated with food security and other critical needs under loans to be offered by Credit Agricole Ukraine (Kiev) and Kredobank (Lvov) equivalent to 50 million euros and 35 million euros respectively.

Ukrainian media reported citing the bank's statement that its Board of Directors approved these projects on October 14. The bank's financing will amount to 12.5 million euros and 8.75 million euros respectively.

The projects were approved on the basis of minimum 50% of donor funding coverage by the EBRD Crisis Response Special Fund under a specific window for the EBRD's special package in response to the crisis in Ukraine.

The programs are aimed at promoting food security in Ukraine through expanding the banks' credit capability and providing access to financing to Ukrainian private companies operating in critical sectors associated with the agricultural industry, including agribusiness, food processing, transportation, and imports.

Apart from that, this could also be applied to other critical programs, such as those in the pharmaceutical sector.

A week ago, the EBRD announced it endorsed similar projects for ProCredit Bank and OTP Bank (both based in Kiev) equivalent to 25 million euros and 8.75 million euros respectively and sharing 50% of risks associated with OTP Leasing contracts worth in total 19.5 million euros.

According to the EBRD's website, Kredobank (KB) is a leading bank in the western part of Ukraine, ranking 14th by total assets ($1.1 billion, 1.6% of the market share) out of 67 Ukrainian banks (or 7th out of 16 foreign owned banks) as of the end of the first half of 2022, operating via 65 branches and having 58,000 corporate and 500,000 retail customers. KB is 100%-owned by PKO Bank Polski SA, a major systemic bank in Poland trading on WSE, in which the Polish Ministry of State Assets owns 29.4%.

According to the EBRD, Credit Agricole Ukraine, a wholly-owned subsidiary of Credit Agricole S.A., France, is a commercial bank in Ukraine ranked 10th by assets ($2.0 billion, 3.0% market share). It carries out conventional banking operations, offering lending, deposit taking, fee and commission-based services to corporate and retail clients through a country-wide network of 148 branches and 300 ATMs and self-service kiosks.