EBRD to support $206 million in Ukraine investment via local banks

LONDON (Reuters) – The European Bank for Reconstruction and Development (EBRD) said on Wednesday it will help facilitate loans in Ukraine for key industries from agriculture to pharmaceuticals.

The bank will issue risk-sharing instruments to local banks Credit Agricole Ukraine, ProCredit Bank, OTP Bank Ukraine and leasing company OTP Leasing aimed at backing up half of the risk of 200 million euros ($206.34 million) in new financing, according to an emailed statement from the bank.

The EBRD will provide a 50-million euro guarantee to support the lending, which is also aimed at sectors such as food processing, transport and logistics and retail.

“The bank’s dedicated food security package envisages supporting 200 million euros of investment this year in Ukraine,” the statement added.

The lender, which covers countries stretching from Kazakhstan to Hungary and Tunisia, will commit up to 3 billion euros to Ukraine over 2022 and 2023 to help shore up the war-torn country’s businesses and economy since Russia’s invasion on Feb. 24.

($1 = 0.9693 euros)

(Reporting by Jorgelina do Rosario)