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financing of $500mn through an IBRD loan that is supported by a guarantee from the United Kingdom for the same amount and mobilized under the Public Expenditures for Administrative Capacity Endurance (PEACE) Project.
The IFC will provide $2B in finances for Ukrainian businesses. The Board of Directors of the International Finance Corporation (IFC), which is part of the World Bank, has supported a $2B financing program for Ukrainian businesses, Ukraine's Economy Minister Yuliya Svyridenko said. The main areas of the program are the banking sector of Ukraine, the agricultural sector, and small and medium-sized business entrepreneurs. IFC management allowed the corporation to work directly with state-owned companies as an exception for Ukraine. Usually, the IFC is practically prohibited from working with state-owned companies. This financing is expected to mobilize private credit capital, as the IFC usually finances no more than 30% of s project’s cost and seeks to involve commercial banks and other MFIs in the financial consortium. Thus, the minister noted that the total volume of Ukrainian projects that can count on financing could amount to more than $6bn.
The Council of Europe Development Bank will increase capital to help Ukraine. The governments of the Council of Europe Development Bank's (CEB) shareholders, the largest of which are France, Germany, and Italy, have agreed to increase its capital by €4.25 billion, including €1.2 billion of new paid-up capital. This is in response to the bank’s increasing lending to help members cope with the crisis in Ukraine. The bank was founded in 1956 to finance the resettlement of refugees and displaced persons after the Second World War. With €30B in assets, it provides loans to member governments to fund social investments such as schools, hospitals, and public housing. Helping its 42 member states this year, the bank has already provided €1.3B in loans to help Ukraine's neighboring countries cope with the influx of refugees from the war. The capital increase became necessary to support lending in the coming years and anticipation of new projects in Ukraine after completing the procedure for its accession to the EU.
The EBRD has already provided Ukraine with €1B and mobilised more than €1.4B in donor aid. As the President of the EBRD, Odile Renaud-Basso said, the US contributed $500M to the Fund for Crisis Response to the War in Ukraine, adding to the €1.4B in donor support. Norway, which provided €200M to support Ukraine's energy and food security through the EBRD, and the Netherlands, which allocated €72M in grant funding to Ukrenergo. As well, Great Britain has provided a €54.4M guarantee to support the EBRD loan to Ukrenergo. Canada and Germany have both supported the €300M EBRD loan for Naftogaz of Ukraine with guarantees of €36.5M and €50M, respectively. In addition, the EU provided €66.8M in guarantees to support EBRD loans to Ukrenergo, Ukrzaliznytsia, and Farmak. Other donors include France, with a €100M unsecured guarantee for Naftogaz and Ukrzaliznytsia, and Spain, with a €100M unsecured guarantee to support food security and the municipal sector.
Zelensky calls on West to allocate $843 million to support Ukraine’s critical infrastructure in winter. "This is significant. But significantly less than what a blackout in Ukraine could cost us all,” Zelensky said.
Ukraine’s post-war reconstruction to cost up to 600bn euros. World Bank Vice President for Europe and Central Asia Anna Bjerde told Austrian
36 UKRAINE Country Report January 2023 www.intellinews.com