The European Bank for Reconstruction and Development (EBRD) is providing a new credit line for risk-sharing in the portfolio of Ukrainian OTP Bank, 100% owned by Hungarian OTP Bank Plc.
This was announced by the EBRD press service.
The EBRD credit line will cover up to 50% of OTP Bank's credit risk on 200 million euros in new sub-loans for private enterprises operating in critical sectors: agriculture, energy, manufacturing, and transportation.
Up to 20% of the loans will support long-term investments in micro-, small-, and medium-sized private enterprises. After completing their investment projects, these businesses will receive investment grants funded by the EU under the EU4Business initiative, along with technical assistance. The EBRD has already allocated 66 million euros in EU grant support for Ukrainian small and medium-sized enterprises under the EU4Business credit line, including 5 million euros for projects through OTP Bank.
This is the fifth and largest loan provided by the EBRD to OTP Bank. Including this loan, the total financing under similar EBRD guarantees, signed since the start of the full-scale war, amounts to nearly 2 billion euros.
Note: Since Russia's invasion in 2022, the EBRD has provided Ukraine with over 5.4 billion euros, with more than 1.6 billion euros allocated last year. The bank is investing in energy security, critical infrastructure, food security, trade, and the private sector.
