EBRD to ensure allocation of EUR 11 mln to support Ukrainian economy

The European Bank for Reconstruction and Development (EBRD) will ensure the allocation of EUR 11 million to support Ukraine's efforts to reform its economy and improve its business climate, according to a statement released by the bank's press service.

According to the statement, international donors have committed EUR 11 million to a new fund established and managed by the EBRD. Grants to the EBRD-Ukraine Stabilization and Sustainable Growth Multi-Donor Account (MDA) were made available by Finland, France, Germany, Netherlands, Sweden, Switzerland, the UK and the United States. Denmark, Japan and Norway are also among countries considering contributing to the fund.

The funds will help paving the way for a planned increase in EBRD investments in the country and to provide effective support to the authorities for policy reforms that are urgently needed to stabilize the economy.

In the use of the funding there will be a strong emphasis on improving the investment climate and combating corruption, stabilizing the banking sector, increasing energy security, expanding private sector competitiveness and upgrading municipal infrastructure.

As reported, the EBRD plans to invest EUR 1 billion in Ukraine's projects in 2015.

The EBRD is the largest financial investor in Ukraine. As of the end of September 2014 the bank had committed almost EUR 9.8 billion ($12.4 billion) through 337 projects in the country.

The bank cut investments in Ukraine by 12.2% in 2013, to EUR 820 million, and by 8.4% in 2012, to EUR 934 million.