You're reading: World Bank gives Ukreximbank $200 million loan for energy efficiency project

The World Bank has approved a $200 million loan for the State Export-Import Bank of Ukraine as part of an energy efficiency project in Ukraine.

The Ukrainian bank said in a press release that the guarantee agreement between Ukraine and the World Bank and the loan agreement between Ukreximbank and the World Bank were signed on June 10.

"In accordance with the agreements, the World Bank will provide a $200 million loan to Ukreximbank against government guarantees for up to 30 years," reads the statement.

The energy efficiency project is aimed at reducing energy consumption in Ukraine’s industry and decreasing energy losses in the utilities sector, in particular, in the heat supply system.

Using the funds received, Ukreximbank will provide medium- and long-term loans to finance energy efficiency investment projects, including through other commercial banks. The selection of end borrowers and banks participating in the project will be conducted in line with the World Bank criteria foreseeing a reduction in energy consumption and financial stability.

Ukraine joined the World Bank in 1992. Over the period of its cooperation with Ukraine, the bank had committed about $7 billion to the country through 38 operations.

According to the National Bank of Ukraine, as of April 1, 2011, Ukreximbank ranked second in Ukraine in terms of total assets (Hr 76.255 billion) among the 176 banks operating in the country.