The European Bank for Reconstruction and Development (EBRD) is stepping up its support to Ukrainian exporters and importers by increasing financing available under its Trade Facilitation Programme (TFP) to the Sate Export-Import Bank of Ukraine (Ukreximbank) by $100 million to $270 million, the bank said in a press release.
Through the Programme, the Bank provides guarantees to international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by banks in the countries of operations, the bank said.
“The transaction is the EBRD’s response to a strong and growing market demand to support cross-border trade on the background of the complete lack of external financing from both foreign commercial banks and Ukraine’s trading partners,” reads the press release.
Ukreximbank joined the TFP in May 2007 and has become one of the most active banks in trade finance in Ukraine. Since then, Ukreximbank has used TFP support for financing of 260 transactions with volume over $650 million.
According to the bank, the TFP has supported trade transactions worth 1.5 billion euros in Ukraine to date, of which over 175 million euros has been processed in 2014 so far.
The EBRD is the largest financial investor in Ukraine. As of October 2014 the Bank had committed almost 9.8 billion euros ($ 12.4 billion) through 337 projects in the country.
