- EBRD provides a new risk-sharing facility to Credit Agricole Ukraine
- EBRD guarantee to boost lending to Ukraine’s agribusinesses, critical industries
- Supported by the United States of America and the European Union
The European Bank for Reconstruction and Development (EBRD) is providing a €12.5 million unfunded portfolio risk-sharing facility to Credit Agricole Ukraine to unlock €50 million of new financing to the private sector amid the ongoing war in the country.
The instrument will allow one of Ukraine’s leading banks to provide businesses in a number of critical industries – including agriculture, food processing, retail, transport and pharmaceuticals – with much-needed finance to continue operating and supporting livelihoods.
Food security and the private sector are among the five key areas in which the EBRD is focusing its support for Ukraine's real economy during the war. A reliable and long-standing partner to the EBRD, Credit Agricole Ukraine has a strong market presence and wide-ranging expertise in supporting the private sector and agribusinesses. Since the start of the war, the EBRD has signed 14 similar transactions with eight partner financial institutions in Ukraine, facilitating loans worth more than €630 million to Ukrainian businesses.
The United States of America, through the Crisis Response Special Fund, will provide first-loss risk cover to partially mitigate the risk associated with the new exposure. Up to 15 per cent of the risk-shared loans will come under the EU4Business-EBRD Credit Line, a programme designed to support micro, small and medium-sized enterprises’ investments in European Union (EU)-compliant, green technologies. The EU is funding associated technical assistance and investment grants under its EU4Business initiative.
The EBRD is a committed and steadfast partner to Ukraine. It has already achieved its target of providing at least €3 billion of financing to Ukraine’s real economy in 2022-23.
Earlier this month, the Board of Directors of the EBRD recommended that its Governors approve a paid-in capital increase of €4 billion that will allow the Bank to continue its significant and long-term investments in Ukraine, both now and in the future.