EBRD will lend in hryvnia to Ukrainian entrepreneurs affected by quarantine restrictions – Finance ministry
The European Bank for Reconstruction and Development (EBRD) will start lending in the hryvnia to Ukrainian entrepreneurs affected by quarantine restrictions, which was made possible thanks to the signing of an agreement between the National Bank of Ukraine (NBU) and the EBRD on a swap of $500 million, according to the website of the Ministry of Finance.
"The agreement was concluded for two years with the possibility of prolongation. The minimum tranche amount under the agreement is $25 million, and the minimum tranche term is up to three months with the possibility of rollover," the statement said.
It is specified that the resources will be aimed at supporting liquidity, replenishing working capital and financing trade operations of Ukrainian enterprises affected by quarantine restrictions caused by the coronavirus pandemic.
"Businesses will get loans from the EBRD in hryvnias, thus they will not bear risks associated with currency exchange. At the same time, the NBU's buying currency from the EBRD on a swap basis will contribute to the growth of Ukraine's international reserves, which will enhance macro-financial stability and will also have a positive effect on the mood of market participants," the ministry said.
As reported, the parties plan that the first transaction in the framework of this swap will be carried out in the coming weeks.