It is predicted that the share of investment financing will increase next year
In 2022, the European Bank for Reconstruction and Development (EBRD) plans to invest more than €1.5 billion in projects in Ukraine. This was stated by Matteo Patrone, Managing Director of the EBRD in Eastern Europe and the Caucasus, reports Interfax-Ukraine.
According to him, in 2023, there will be the same level of investments in Ukraine, if not more, depending on how the situation will develop. If in 2022 a significant part of the funds went to support liquidity, then, as predicted by Matteo Patrone, the share of investment financing will increase next year, in particular, for new projects.
Typically, the EBRD invests about €10-11 billion per year in countries of operations, and the volume of funds allocated to Ukraine indicates its role for the bank. The institution provides such large funds because it takes part of the risk on its balance sheet, the other part is covered by donors.
As Matteo Patrone reminded, in 2022 the EBRD granted a €150 million loan to Ukrzaliznytsia and is preparing a new project with the railway operator – it is expected to be approved at the beginning of 2023. Funds have also been allocated for the new Horizon Capital direct investment fund.
In addition, Naftogaz of Ukraine has attracted a credit line of up to €300 million from the EBRD for the purchase of gas, and a large donation in the form of a grant is expected at the beginning of this week. Previously, the national energy company Ukrenergo received €150 million for liquidity support, this week the EBRD board of directors plans to approve another large package of support for it (partly a loan, partly a grant from another donor).
According to the managing director, the bank is soon going to sign an agreement with Lviv, is finalizing the preparation of an agreement with Dnipro, and is working with Kyiv on a large liquidity package. The EBRD is also considering the possibility of supporting front-line cities both in the east and in the south of Ukraine, but it is too early to talk about it at the moment.
As GMK Center reported earlier, Ukrenergo can receive not only credit, but also grant funds from the European Bank for Reconstruction and Development (EBRD) for the repair of power grids damaged by Russian shelling. The World Bank is also considering the issue of providing financial assistance.