EBRD plans to cover up to 50% of credit risk in Ukreximbank's new loans for 40 mln euros

MOSCOW. Jan 18 (Interfax) - The European Bank for Reconstruction and Development (EBRD) will cover up to 50% of the credit risk in newly originated sub-loans by Ukraine's state-owned Ukreximbank with total value of 40 million euro equivalent, Ukrainian media said, citing the EBRD website.

The EBRD Board of Directors is to review the project on January 26, it said. The project will include a sub-limit of up to 8 million euros or 20% of the Covered Portfolio to finance long-term capital investments of micro, small and medium sized enterprises to upgrade their technologies and equipment to EU standards, including investments in sustainable and green technologies (70% of the sub-limit), thereby enhancing businesses' competitiveness, the EBRD said.

"Eligible sub-borrowers will also receive EU-funded technical assistance and grant support in the form of investment incentives upon the completion of their investment projects," the EBRD said. According to National Bank of Ukraine data, Kiev-based Ukreximbank ranked 3rd by total assets (255.1 billion hryvni) among 63 banks operating in the country as of November 1, 2023. Ukreximbank has 22 branches and 28 sub-branches across Ukraine, as well as two offices in London and New York.