The European Bank for Reconstruction and Development (EBRD) and Lviv City Council signed an agreement to provide the city with EUR 22 million as part of a pilot program to support Ukrainian municipalities, Lviv City Council's press service said on Wednesday.

"Today we are signing an agreement on the participation of Lviv in a pilot project jointly with the EU and the EBRD. This is a program to support Ukrainian municipalities as part of an extraordinary EU solidarity package. The city will receive a loan, the funds of which will be used to stabilize the operation of our largest utilities that suffered losses during coronavirus pandemic," the City Council's press service said, citing First Deputy Mayor of Lviv Andriy Moskalenko.

According to the statement, Lviv will receive EUR 22 million at 2.1% per annum. The EBRD is ready to provide a EUR 10 million loan to key utilities in Lviv and is ready to provide another EUR 12 million, depending on the needs of the city.

In particular, they plan to use the loan funds to ensure liquidity and the needs for working capital of the following communal enterprise Lvivelektrotrans, Lvivavtodor, Lvivteploenergo, Lvivvodokanal and Zelene Misto (Green City).