U.S. International Development Finance Corporation announces its intention to raise $1 bln to support Ukrainian economy

KYIV. Jan 31 (Interfax-Ukraine) – Scott Nathan, CEO of the U.S. International Development Finance Corporation (DFC), announced his intention to mobilize $250 million for banks in Ukraine to increase their small business lending.

Speaking on Wednesday in Kyiv at the American Chamber of Commerce, he also announced two letters of intent to explore new investments.

In particular, DFC First, DFC is working with Horizon Capital to support eCommerce, fintech, and technology businesses across Ukraine and Moldova.

Second, DFC is exploring the expansion of the Dobrobut Hospital in Kyiv, which provides post-surgical, physical, psychological rehabilitation and prosthetic services, according to a press release from the corporation.

"The private sector is resilient and has a crucial role to play in investing for Ukraine’s future," Nathan said.

"I’m here in Kyiv today because we are investing now to help keep Ukrainian businesses moving forward despite the difficult circumstances. I’m convinced that new DFC investments here will mobilize well over $1 billion in private sector capital to support the economy of Ukraine. DFC remains committed to supporting high-standard, high-value projects in this country in the months and years to come," he said.

In turn, Prime Minister of Ukraine Denys Shmyhal said that the restoration of the Ukrainian economy should become an example of effective, transparent and responsible investment of funds. "It is urgent not only to restore critical infrastructure destroyed by Russian strikes, but also to create a new energy infrastructure for Ukraine – decentralized, built on the basis of modern technologies as part of the energy transition with an emphasis on renewable and nuclear energy," the Prime Minister said.

According to him, American business can play an important role in this process. "We really appreciate that DFC will be able to provide support to Ukrainian companies. Military risk insurance is critical. We would be grateful for the work of DFC, in particular, in this area as well," Shmyhal said.

He said that Ukraine is ready to offer proven and promising investment projects in the private sector, where business owners are also ready to take on part of the risks.

"The government of Ukraine perfectly understands the request of the U.S. society for detailed information on the directions for using the funds of U.S. taxpayers," Shmyhal said, adding that "we are completely transparent, we cooperate in the use of the assistance provided, we provide all the requested information to the World Bank, and the U.S. administration."

U.S. International Development Finance Corporation (DFC) is the U.S. government’s development finance agency. The Corporation partners with the private sector to finance solutions to the most critical challenges facing the developing world today. The corporation invests across sectors including energy, healthcare, critical infrastructure, and technology.