The EBRD Board of Directors of the European Bank for Reconstruction and Development (EBRD) on October 4 decided to provide a facility of up to EUR 50 million under the Trade Facilitation Programme (TFP) for Oschadbank (Kyiv), the EBRD has said on its website.

As reported, the project is undertaken within a broader effort aimed at facilitating Oschadbank's commercialization and preparation for eventual privatization in the context of the state-owned bank reform program that is developed and being implemented by the government of Ukraine.

This effort will include several stages of financing and Technical Cooperation (below) over a period of up to five years, beginning with the TFP facility and an associated Technical Cooperation Project. The subsequent stages of a broader cooperation in preparation for the privatization are linked to and conditional upon the progress in improvement of corporate governance; commercialization of operations, and operational overhaul of Oschadbank.

"I welcome the decision of the EBRD's decision to provide a credit line to Oschadbank under TFP program. The next step is the signing of the agreement soon and the beginning of the bank's operation with one of the largest investors into Ukraine," Oschadbank Board Chairman Andriy Pyshny told Interfax-Ukraine, commenting on the decision made by the EBRD.

Oschadbank was founded in 1991. Its sole owner is the state.

Oschadbank ranked second among 108 operating banks in the country on July 1, 2016 by total assets (UAH 185.077 billion), according to the National Bank of Ukraine.