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EBRD to repeatedly share 50% of risks on loans from ProCredit Bank, OTP Bank, OTP Leasing agreements
KYIV. Oct 13 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) will share 50% of the risks on loans to ensure food security and other critical needs, which will be provided to eligible borrowers of ProCredit Bank and OTP Bank (both from Kyiv) for a total amount equivalent to EUR 25 million and EUR 8.75 million respectively.
As stated in the report of the bank, its board of directors approved these projects on October 7, as well as a similar project for 50% risks under new leasing agreements for a total of EUR 80 million for OTP Leasing LLC, the leading leasing company in the Ukrainian market.
The EBRD said that these are already repeat projects for these partners this year: in April, the bank approved sharing 60% of the risks on loans and payment guarantees of ProCredit Bank and OTP Bank for a total amount equivalent to EUR 25 million and EUR 8.75 million, as well as 50% risks under leasing agreements of OTP Leasing for a total amount of EUR 19.5 million.
The EBRD said that the project has been approved on the basis of minimum 50% donor funding coverage from the EBRD Crisis Response Special Fund under a specific window for the EBRD’s War on Ukraine Response Package.
The facilities will support food security in Ukraine by expanding lending to the Ukrainian private companies operating in the primary and secondary agriculture and other critical industries (such as pharmaceuticals, food retail, transportation and logistics), with the ultimate goal of preserving livelihoods in the country.
