5 Feb 2024 19:05

EU to give IFC guarantees on investment for Ukraine

BRUSSELS. Feb 5 (Interfax) - The European Commission on Monday announced signing a guarantee agreement with the International Finance Corporation (IFC) to support investment for Ukraine rebuilding.

"Through the agreement the European Union will provide up to 90 million euros in financial guarantees to support investments in Ukraine to IFC [...] as part of IFC's Better Futures Program," the sides said in a communique released in Brussels.

Mobilized investments under the program by the private sector are expected to reach more than 500 million euros across sectors including essential infrastructure and goods production, promoting de-carbonization and the preservation of livelihoods, the document said.

"This agreement is yet another example of our excellent cooperation with IFC in our effort to boost investments in Ukraine. This EFSD+ guarantee will help rebuild the country's infrastructure, support its business sector, and strengthen the resilience of its economy, reaffirming the European Union's commitment to stand by Ukraine in this time of crisis," European Commissioner for Neighborhood and Enlargement Oliver Varhelyi said, commenting on the signing.

The European Fund for Sustainable Development Plus (EFSD+) is part of the EU investment structure. It supports state and private investment in partner countries worldwide, providing financial guarantees, mixed financing and technical assistance to assist inclusive economic development, Brussels said.

Financial guarantees under the EFSD+ are legally binding agreements under which the EU agrees to pay a specific amount in situations of financial losses that can be faced by creditors.