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FMO cuts its portfolio in Ukraine by EUR 164.1 mln due to war
KYIV. Aug 17 (Interfax-Ukraine) – The Dutch Entrepreneurial Development Bank (FMO) has reduced the value of its portfolio in Ukraine by EUR 164.1 million, including direct investments by EUR 67.6 million, loans by EUR 96.5 million, according to the bank’s semi-annual report.
"We will continue to monitor economic developments and mitigate risks when necessary. We believe that global equity markets will remain very volatile in the second half of the year and that the war in the Ukraine could lead to further impairments to our debt and equity portfolios," FMO said in the document.
According to it, after the start of the war, FMO provided assistance to displaced Ukrainians, in particular through small funding for Gazelle Finance operating in Georgia and Armenia, which will launch a project to help Ukrainian SMEs relocate and start a business in Georgia.
Initially, in its annual report after the Russian invasion of Ukraine, FMO estimated the risks in Ukraine at around EUR 200 million under contracts with 14 clients, specifying that it provided financing mainly to agro-industrial companies and the renewable energy sector.
Early June, the bank announced that it had reduced the cost of direct investments by EUR 70 million and loans by EUR 90 million.
In the first half of 2022, FMO net income was EUR 102 million compared to EUR 198 million in the first half of 2021.
