1 Sep 2023 12:43

Austria's OeEB provides 30-mln-euro credit line to BSTDB for green finance projects, private sector support in Ukraine

MOSCOW. Sept 1 (Interfax) - Austria's OeEB development bank is providing a long-term credit line of 30 million euros to the Black Sea Trade and Development Bank (BSTDB) for green finance projects in the Black Sea region and private sector support in Ukraine.

Ukrainian media reported citing statements by both banks that the relevant documents were signed in mid-July, and the seven-year credit line is secured by a guarantee from the Austrian Federal Finance Ministry.

"The focus of the newly signed credit line is on bridging liquidity bottlenecks of private sector companies. As soon as conditions permit, OeEB funds will also be extended via the BSTDB for sustainable reconstruction projects that comply with international environmental and social standards," OeEB quoted its Executive Board Member Michael Wancata as saying with regard to Ukrainian projects.

Up to 50% of the credit line is earmarked for financing private sector investments in Ukraine, it said.

Wancata pointed out that, together with other development finance institutions, OeEB signed a memorandum of understanding with the European Bank for Reconstruction and Development (EBRD) at the Ukraine Recovery Conference in London in June.

The BSTDB said in its statement that, by channeling these resources, the two banks seek to accelerate Ukraine's path to stability, economic prosperity, and sustainable development.

"The funds will empower us to promoting cleaner and more environmentally friendly sources of energy. Additionally, we are excited about the opportunity to allocate a substantial portion of the facility to support the private sector in Ukraine, thus contributing to the country's recovery efforts," BSTDB President Serhat Koksal said.

OeEB was founded in March 2008 and has been the BSTDB's partner since 2012.

The BSTDB is an international financial institution comprising 11 member states of the Black Sea Economic Cooperation Organization. Turkey, Russia, and Greece each hold 16.5% in its capital, Ukraine and Bulgaria each 13.5%, Azerbaijan 5%, Albania 2%, Armenia 1%, and Georgia and Moldova each 0.5%. The bank is committed to promote economic development and trade cooperation between the Black Sea region countries.