The World Bank will help the EBRD finance guarantees for Ukrainian trade
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The European Bank for Reconstruction and Development and the World Bank’s Investment Guarantee Agency (MIGA) agreed to jointly finance guarantees under the Trade Facilitation Program, Ukraine will receive the first aid.
This was reported by the press service MIGA, EBRD.
The parties signed the first landmark agreement on joint financing, according to which MIGA will provide the EBRD with trade financing guarantees of up to $200 million to cover part of the EBRD’s risks under the bank’s Trade Facilitation Program (TFP).
Ukraine will be the first country to receive support under the agreement.
“This guarantee will have an important impact in helping us to grow our trade finance business in Ukraine, which is one of our strategic priorities in working in that country,” said EBRD President Odile Renaud-Basso.
It is emphasized that due to the full-scale war, foreign commercial banks stopped taking direct risks for Ukrainian trade finance operations. To solve this problem, the EBRD program expanded its opportunities for Ukrainian banks.
Since February 2022, the TFP has supported trade operations worth more than 400 million euros. We are talking about goods that are decisive for the Ukrainian economy and for solving the problems of food security.
As part of the TFP, guarantees are provided to international commercial banks to cover political and commercial payment risk for operations carried out by issuing banks in the EBRD’s countries of operations.
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