The European Bank for Reconstruction and Development (EBRD) is expanding its opportunities to increase lending to Ukrainian companies in the national currency. This became possible due to the signing of an agreement between the National Bank of Ukraine and the EBRD on foreign exchange transactions in UAH / USD in the amount of up to USD 500 million.
The contract is concluded for two years with the possibility of extension. The minimum amount of one tranche under the agreement is 25 million US dollars, and the minimum term of the tranche is up to 3 months with the possibility of a rollover.
The resource will be aimed at maintaining liquidity, replenishing working capital, and financing the trading operations of Ukrainian enterprises affected by quarantine restrictions caused by the Covid-19 coronavirus pandemic. Businesses will be receiving a loan from the EBRD in hryvnia, thus not bearing the risks associated with currency exchange.
At the same time, it will contribute to the growth of Ukraine’s international reserves, which will strengthen macro-financial stability, as well as have a positive impact on the mood of financial market participants.
The parties expect to make the first transaction under the program in the next few weeks.