13 Feb 2024 16:23

EBRD to cover up to 50% of risk in Ukrgasbank's new loans totaling 50 mln euros

MOSCOW. Feb 13 (Interfax) - The European Bank for Reconstruction and Development (EBRD) plans to cover up to 50% of the credit risk equivalent to 50 million euros to be issued by Ukraine's state-owned Ukrgasbank.

The facility is to be delivered in two equal tranches, with the second tranche being uncommitted, Ukrainian media said citing the EBRD's statement.

The project will also include a sub-limit of up to 10 million euros, or 20% of the Covered Portfolio, to finance long-term capital investments of micro-, small-, and medium sized enterprises (MSMEs) to upgrade their technologies and equipment to EU standards, including investments in sustainable and green technologies (at least 70% of the sub-limit), thereby enhancing their competitiveness, it said.

The facility will be used primarily to support lending to Ukrainian private companies operating in the primary and secondary agriculture and other critical industries, including food processing, retail, and logistics, it said.

As of December 1, 2023, the National Bank of Ukraine ranked Ukrgasbank fifth with total assets of UAH 180.85 billion out of 63 banks operating in the country.