17:00 11.06.2024

EU signs first guarantee agreements for EUR 1.4 bln, launches Ukraine Investment Framework

2 min read
EU signs first guarantee agreements for EUR 1.4 bln, launches Ukraine Investment Framework
Photo: elements.envato.com

On the sidelines of the Ukraine Recovery Conference (URC2024) in Berlin on Tuesday, the European Union signed the first guarantee agreements with international financial organizations and development banks for a total amount of EUR 1.4 billion as part of the investment component of the Ukraine Facility program - Ukraine Investment Framework, a correspondent of Interfax-Ukraine reports.

"The new agreements consist of EUR 1 billion in credit guarantees and EUR 400 million in mixed financial grants," the Ministry of Economy of Ukraine said.

Alfonso Garcia Mora, IFC Vice President of the World Bank Group for Europe, Latin America and the Caribbean, told Interfax-Ukraine that in the case of IFC we are talking about EUR 350 million in loan guarantees.

As the Ministry of Economy notes, the programs are aimed at the transport and municipal sectors, access to financing for small and medium-sized enterprises (SMEs), in particular those affected by military operations in de-occupied and front-line regions.

"For growth [of the economy] to continue, we need to quickly restore what was destroyed, in particular the energy infrastructure, which the enemy has been mercilessly destroying in recent months, but most importantly, we need to attract investment in the private sector, help businesses operate and develop. The first agreements worth EUR 1.4 billion signed with international and bilateral financial institutions within the Ukraine Investment Framework will contribute to this," First Deputy Prime Minister - Minister of Economy Yulia Svyrydenko commented on the agreements.

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