The European Bank for Reconstruction and Development (EBRD) is providing Credit Agricole Ukraine with a €12.5 million unfunded portfolio risk-sharing facility to unlock lending in the agriculture, food processing, retail, transport and pharmaceutical sectors.
The facility is meant to unlock €50 million in loans to stimulate investment in modernization of equipment and technology by privately owned micro, small and mid-sized Ukrainian enterprises, Credit Agricole Ukraine said in a press release.
The US, through its $500 million contribution to the EBRD Crisis Response Special Fund, will provide first-loss risk cover, and up to 15 per cent of the loans will come from the EU4Business-EBRD Credit Line, which supports investments in green technologies, the EBRD said.
Since the start of the war with Russia, the EBRD said it has signed 14 such deals with eight financial institutions in Ukraine. The transactions have unlocked more than €630 million in loans to Ukrainian businesses, the lender said.
Credit Agricole says it has a 12% share of the Ukrainian market and agribusiness accounts for 50% of its loan portfolio.
