The International Financial Corporation will finance lending to Ukrainian businesses for $2 billion
The Board of Directors of the International Finance Corporation (IFC), which is part of the structure of the World Bank, supported the Ukrainian business financing program for 2 billion dollars. This was reported by First Vice Prime Minister – Minister of Economy of Ukraine Yulia Svyridenko.
“The main areas of implementation of this program are trade financing for Ukrainian banks, the agricultural sector, and small and medium-sized business entrepreneurs. The fact that the corporation’s management supported the proposal to allow IFC to work with state-owned companies is also very important. This was done as an exception for Ukraine. In general, IFC is practically prohibited from working with state-owned companies,” said Yuliya Svyridenko.
According to the Minister of Economy of Ukraine, the IFC Board of Directors also approved two separate projects for the private sector:
- For the French company EnVivo, which has agribusiness in Ukraine.
- Insurance of the risks of the parent company, which allows the release of additional capital (through MIGA) for Raiffeisen Bank.
“Direct lending and trade finance support from IFC, as well as insurance from MIGA until the war’s end, is a positive sign for many investors considering whether to invest in Ukraine right now. Such financing is expected to mobilize private credit capital, as IFC usually finances no more than 30% of the project cost, bringing commercial banks and other MFIs into the financial consortium. Thus, the total volume of projects of Ukrainian enterprises that can be financed can amount to more than 6 billion dollars”, Yulia Svyridenko concluded.
The International Finance Corporation (IFC) is part of the World Bank Group. One of the most important directions of IFC’s activity is mobilizing more significant amounts of private capital for development, primarily in low-income countries and states with instability and conflicts.
Ukraine has been a member of the IFC since 1993.
In September 2022, IFC allocated $30 million for investments in Ukraine and Moldova.