200 million euros: the EBRD is going to cover up to 50% of the risk on new loans to Oschadbank
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The European Bank for Reconstruction and Development plans to assume up to 50% of the risk on newly granted loans to state-owned Oschadbank totaling the equivalent of EUR 200 million.
As stated in the message of the EBRD, the bank's board of directors plans to consider the project on February 7, Interfax-Ukraine reports.
According to the EBRD, the guarantee financing will be provided in three tranches: the already agreed first tranche of €12.5 million of a guarantee against collateral, designed to cover €50 million, and two tranches of €18.75 million under discussion, to cover €75 million of the loan portfolio.
The project also includes a sub-limit of up to EUR 40 million, or 20% of the covered portfolio, to finance long-term investments by micro, small and medium-sized enterprises to modernize their technologies and equipment in line with EU standards, including investments in green technologies (70% of the sub-limit is allocated for this purpose), and even to increase their competitiveness.
The mechanism will be mainly used to support lending to Ukrainian private companies operating in primary and secondary agriculture, as well as other critical sectors such as food processing, retail, and logistics.
According to the National Bank of Ukraine, as of November 1, 2023, Oschadbank was ranked 2nd in terms of assets (UAH 346.85 billion) among 63 banks operating in the country and 1st in terms of the number of branches (1,182).
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Oschadbank Press Center