EBRD raises trade financing limit for Ukrgasbank to $80 mln under TFP
The European Bank for Reconstruction and Development (EBRD) has increased trade financing limit for state-owned Ukrgasbank (Kyiv) to $80 million under the Trade Facilitation Program (TFP), which is twice the previous funding volume.
According to a report on Ukrgasbank's website, increasing the limit will allow the financial institution to increase support and financing of foreign economic projects, including those from the small and medium-sized business (SME) segment, and extend the funding period to five years.
The goal of the TFP is to support international trade in the EBRD's countries of operations. Under this program, the EBRD provides guarantees to international confirming banks, undertaking political and commercial payment risks associated with international trade transactions that banks finance in these countries. The TFP provides access to finance for exporters and importers, including small businesses, and helps develop local capacity to comply with trade finance requirements and skills.
The EBRD is the largest international financial investor in Ukraine. Since the start of operations in the country in 1993, the EBRD has committed to provide almost EUR13.6 billion within 432 projects. TFP participants are eight Ukrainian banks.