By KYIV. Nov 14 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) may take on up to 50% of the credit risk on newly issued loans from the Ukrainian Credit Agricole Bank for a total amount of EUR 50 million equivalent.
As the EBRD said in a statement on Tuesday, this project is planned for consideration by the board of directors on the same day.
It is reported that the size of the EBRD guarantee will be EUR 12.5 million, it will be provided in two tranches.
As evidenced by the information on the website, the goal of the project is to support lending to Ukrainian private companies operating in primary and secondary agriculture and other critical industries, including the food industry, retail trade, and logistics.
The project also includes a sublimit of EUR 7.5 million (or 15% of the total risk coverage) to finance the modernization of technologies and equipment of micro, small and medium-sized enterprises in accordance with European Union standards, including the implementation of green technologies – 70% of sublimit.
“Eligible sub-borrowers will also receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their eligible investment projects,” the report notes.
According to the National Bank of Ukraine, as of September 1, 2023, Credit Agricole ranked 11th in terms of total assets (UAH 101.15 billion) among 64 operating banks in the country and has 141 branches. The bank is wholly owned by French Credit Agricole SA.
