The European Bank for Reconstruction and Development (EBRD) is opening a trade finance line of $25 million for state-owned PrivatBank (Kyiv), which will contribute to Privatbank's growing trade finance business, safeguards Ukraine food exports, the financial institution's press service reported on Thursday.

"This new agreement allows us to issue confirmed letters of credit with post-import financing, which in turn gives opportunities for our clients to increase the period of payment deferral for foreign economic contracts. We are confident that all groups of customers who import goods… will benefit from this major deal between EBRD and PrivatBank," Board Chairman of PrivatBank Gerhard Boesch was quoted in the release as saying.

With the signing of this agreement, PrivatBank joined eleven other Ukrainian banks with which the EBRD already cooperates under the Trade Facilitation Programme (TFP). Since the beginning of the war, the EBRD's own Trade Facilitation Programme has supported EUR 972 million in 355 trade transactions for the most crucial goods for the Ukrainian economy.

During the signing of the agreement, EBRD First Vice President Jurgen Rigterink pointed out PrivatBank's potential to find its own niche in the trade finance business, with a strong franchise across Ukraine and a focus on business with agricultural producers.

"It in turn will effectively align Privatbank's operations with EBRD standards and thus enhance its privatisation prospects in the future," he added.