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The EBRD will increase its financial support for Ukrainian businesses in 2023 and 2024

28 Sep, 2023
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The EBRD will increase its financial support for Ukrainian businesses in 2023 and 2024

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Next year, the European Bank for Reconstruction and Development (EBRD) will expand its funding for projects in Ukraine. The main areas of cooperation in 2024 will include financing equipment manufacturers for demining agricultural lands, a project for war risk insurance, and financing the real sector of the economy. This was discussed during a meeting between Ukraine's First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, and the President of the EBRD, Odile Renaud-Basso.

"We discussed with our EBRD colleagues the relevant directions of cooperation for this and the coming year. It is important for us to increase the volume of humanitarian demining of Ukrainian agricultural lands because we cannot wait 700 years to restore life in territories where military battles were fought just a few months ago. We are fully aware that the demining process in Ukrainian territories is extremely complex and financially demanding. However, without this, recovery work and economic development in the reclaimed territories are impossible. The EBRD is ready to participate in financing the demining of agricultural lands and develop a special financial product in cooperation with banks and the Ministry to finance working capital for manufacturers of demining equipment. This can boost the development of technology and engineering in Ukraine," explained Yulia Svyrydenko.

The meeting also discussed the further cooperation between the EBRD and Development Finance Institutions regarding the coordination of efforts to invest in Ukraine, especially in the private sector of the economy.

They also discussed increasing direct lending to the Ukrainian private sector and supporting the liquidity of state-owned companies.

One important topic for discussion was war risk insurance.

"The money that goes to support the private sector has a significantly greater cumulative effect on the economy than direct budget support. But to attract investors to Ukraine, we must provide them with full protection. Therefore, I am pleased to announce that the EBRD is preparing the legal structuring and management of the relevant project, as well as the development of a product for insuring goods in transit and in warehouses against war risks, in collaboration with Ukrainian insurance companies. In the next stages, the project may also include investment risk insurance," emphasized Yulia Svyrydenko.

They also discussed the possibility of involving the EBRD in financing state support programs for Ukrainian businesses, such as the "Affordable Loans 5-7-9%" program or grants to support processing industries and small businesses.

The Odessa Journal

The Odessa Journal

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