U.S. DFC issues $40 mln loan portfolio guarantee to Raiffeisen Bank Ukraine

MOSCOW. Nov 23 (Interfax) - Raiffeisen Bank Ukraine has received a loan portfolio guarantee of $40 million from the United States International Development Finance Corporation (DFC), which will cover up to 80% of the risk of default on loans and will enable the bank to provide up to $50 million of loans to Ukrainian micro, small and medium-sized enterprises over the next eight years, Ukrainian media said, citing the bank's press release.

"Companies will be able to receive loans for working capital needs and long-term investment projects which will help the Ukrainian economy to recover, stimulate exports, and create new jobs," Raiffeisen Bank Ukraine CEO Alexander Pisaruk was quoted by the press release as saying.

The loan portfolio guarantee agreement with DFC was developed with technical support from the United States Agency for International Development, it said.

Data from the National Bank of Ukraine shows that as of October 1 2023, Raiffeisen Bank Ukraine was the country's fourth largest bank by assets (196.35 billion hryvni) among the 63 banks operating in Ukraine.

DFC is a development finance institution and agency of the United States federal government. It partners with the private sector to finance solutions to the most critical problems facing the world. DFC invests across sectors including energy, healthcare, infrastructure, agriculture, small business, and financial services.