EBRD and UkrEximBank Scale up Support to Energy Efficiency in Ukraine
OREANDA-NEWS. February 13, 2012. The EBRD is concentrating its efforts on providing support to sectors of the Ukrainian economy, which are particularly affected by the adverse economic situation in the region – small businesses and energy efficiency, reported the press-centre of EBRD.
The former has been suffering from under-investment, linked with limited liquidity of domestic banks and various credit risks in Ukraine, for a number of years. The latter has become an issue of national importance in the context of Ukraine’s ongoing attempts to improve its energy security.
A US\\$ 50 million five-year loan to The State Export-Import Bank of Ukraine (UkrEximBank) will support lending to small businesses across the country. Eligible small and medium-sized enterprises (SMEs) will be able to receive loans from UkrEximBank loans of up to USD 3 million to implement energy efficiency projects.
The loan will be supported by the Bank’s technical assistance targeted at further improvement of UkrEximBank’s energy efficiency expertise. It will also be beneficial for eligible sub-borrowers, who will receive assistance in identification and implementation of energy efficiency investments.
Since 2007 the Bank has provided almost USD 470 million to UkrEximBank through subordinate debt and long-term debt transactions making it the EBRD’s largest financial-sector counterpart in Ukraine.
The EBRD is the largest financial investor in Ukraine. As of 31 December 2011, the Bank had committed over EUR 7.5 billion (USD 9.6 billion) through 294 projects.