An investment company, J.P. Morgan, which manages a USD 4 trillion investment fund, will help the Government of Ukraine attract private investment to rebuild the country. This is stated in a Memorandum of Understanding between the Ministry of Economy of Ukraine and J.P. Morgan Securities plc. The document was signed by First Deputy Prime Minister – Minister of Economy of Ukraine Yuliia Svyrydenko.
“We are grateful to J.P. Morgan representatives for sharing with us their experience on how to attract private capital to Ukraine. Our vision of the country’s future recovery is the same. The best recipe for Ukraine’s recovery is not only to attract public funds, but also to mobilize private capital,†said Yuliia Svyrydenko.
J.P. Morgan has ample opportunities to attract private investors, as it manages a USD 4 trillion investment fund. In addition, the company is in constant contact with representatives of the U.S. Government.
Yuliia Svyrydenko noted that Ukraine was in dire need of investment for reconstruction and post-war economic growth. The Government has identified the following priority and prospective areas of recovery and investment: energy, agriculture, natural resources, digital technologies, restoration of transport and other infrastructure.
J.P. Morgan has extensive experience in asset management and public sector engagement, and its experts know the nuances of combining public and private capital to leverage loan financing.
“It is important for us that every stage of the recovery process is as transparent as possible. That is why the involvement of such institutions as J.P. Morgan should become a symbol of such transparency,†emphasized Yuliia Svyrydenko.
According to the Memorandum, J.P. Morgan will advise the Government on:
- financial stabilization, including development and coordination of refinancing and debt restructuring strategies;
- obtaining sovereign credit ratings;
- management of state liquidity assets;
- digitalization of the economy;
- identifying opportunities to establish close economic ties with Europe;
- establishing an institution that would guide and protect public and private sector investment and/or facilitate trade flows.
In addition to signing the Memorandum, the parties agreed to include representatives of J.P. Morgan in the group of advisors and representatives of the financial and investment sector of the capital market jointly with BlackRock.
The parties also agreed to use a number of financial mechanisms that would allow Ukraine to attract targeted financing, including from the U.S. Treasury, in the near future.
