EBRD might share credit risks of Ukraine's OTP Bank for 35 mln euros

MOSCOW. Aug 30 (Interfax) - The European Bank for Reconstruction and Development (EBRD) might cover up to 50% of the credit risk in new sub-loans issued by Ukraine's OTP Bank totaling up to an equivalent of 35 million euros.

The EBRD Board of Directors is expected to approve the project on September 5, Ukrainian media reported with reference to the EBRD's statement.

The risk-sharing instrument is to total 8.75 million euros. The project would have an inclusion period of nine months, following which the EBRD guarantee would have a maximum maturity of two years for 70% of the covered portfolio and five years for 30% of the covered portfolio.

The facility is designed to support lending to Ukrainian private companies operating in the primary and secondary agriculture and other critical industries, including food processing, retail, and logistics, "with the ultimate goal of preserving livelihoods in Ukraine."

Ukraine's OTP Bank (OTPU) is a 100%-owned subsidiary of OTP Bank Plc., Hungary. OTPU was ranked 8th among the 65 Ukrainian banks with total banking assets of UAH 102.593 billion as of early July 2023. It has a chain of 72 outlets across Ukraine.