OREANDA-NEWS. September 12, 2011. The Board of Executive Directors of the World Bank finally approved the loan in the amount of USD 150 million for the period up to 30 years under the Additional Financing for the Second Export Development Project (EDP-2) for Joint Stock Company The State Export-Import Bank of Ukraine, reported the press-centre of Ukreximbank.    

The Additional Financing will increase the existing facility amount under the EDP-2 and boost activity in the framework of the underlying project. The Additional Loan will contribute to continuing positive dynamics of the previous export development project implementation, enhancement of impact of the existing facility on the national exporters’ activity.

Ukreximbank will act as a borrower of funds and will be responsible for Project implementation and bear all credit risks. The World Bank long-terms loan funds will be provided to the Ukrainian exporters, which are in compliance with the Project eligibility criteria.

The Additional Financing funds will increase Ukreximbank potential to render a wide range of services for facilitating export by the most cost-effective means for the customers, which is a critical prerequisite for support of the export development activity of the Ukrainian companies. The Project is expected to result in growth of the Ukrainian corporate sector export volume in the near-term outlook and enhancement of its capacity to support and ensure the export growth in the medium- and long-term outlook.

The resolution taken in May 2011 by the Cabinet of Ministers of Ukraine on the expediency of borrowing a loan from the World Bank and the official negotiations in respect to the Project, which were successfully held pursuant to the Order of the President of Ukraine in June and July of this year by the delegation of Ukraine headed by Mr. Mykola M. Udovychenko, Chairman of the Board of Ukreximbank, were the factors that contributed to approval of the Additional Financing by the Board of Executive Directors of the World Bank.

The final decision taken by the World Bank related to the Additional Financing for the Second Export Development Project opens a green signal for signing contractual documents and the further ratification thereof by the Verkhovna Rada of Ukraine.

Mr. Martin Raiser, The World Bank Director for Ukraine, Belarus and Moldova commenting the decision taken by the Board of Executive Directors of the World Bank stated: “Ukraine needs the more competitive and diversified export categories to facilitate the economic growth in the changing time of the global development. This project was a core source of exporters’ financing during the crisis. By means of the Additional Financing we expect to expand its impact by promoting the long-term economic recovery.”