By KYIV. Dec 13 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) will provide a senior loan of EUR 25 million to provide emergency liquidity support to the City of Dnipro and its key municipal utilities/operators during the war, the EBRD said on its website on Tuesday.
According to the project description, the decision to provide financing was approved by the board of directors of the bank.
As stated in the report, funds in the form of two tranches in the amount of EUR 15 million committed (Tranche 1) and EUR10 million uncommitted financing (Tranche 2) will be used for liquidity support to the city and its key municipal companies to compensate for temporary revenue losses and additional expenses due to the ongoing war in Ukraine.
The loan will support the City’s vital municipal infrastructure providers with operating (i.e., salaries, utilities, etc.) and maintenance costs, servicing the debt under existing projects with the EBRD (if required).
"The City is currently in need of additional liquidity to support its day-to-day operations. Local lenders are not able to provide such medium term financing, given the difficult economic situation in the country. The Project will help the City to adapt to the impacts of the war in Ukraine, in particular with respect to the Internally Displaced Persons (IDPs) flows, and to continue its support to incoming and existing IPDs," the EBRD said in the project description on its website.
The Project is consistent with the EBRD’s Resilience and Livelihoods Framework. Earlier, the EBRD decided to provide a EUR 25 million loan to support Lviv’s liquidity.
