t the URC 25 International Ukraine Recovery Conference in Rome, the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, announced new guarantees worth EUR 185 million for two projects. They are aimed at strengthening Ukraine’s financial sector and improving access to finance for small and medium-sized enterprises.
“MIGA guarantees are a key risk mitigation tool for foreign investors and banks operating in Ukraine. They help to ensure the continuity of the financial sector activities, support lending to small and medium-sized businesses and attract investment for the country’s recovery and reconstruction. We are grateful to our international partners for their willingness to invest in the Ukrainian economy and support its development despite the challenges of wartime,” said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.
A guarantee of EUR 100 million was issued to BNP Paribas S.A., while EUR 85 million to ING Bank N.V. to cover their investments in subsidiary banks in Ukraine. This will help reduce risks on the banks’ balance sheets and ensure further lending to businesses.
The guarantees are implemented through the Support for Ukraine’s Reconstruction and Economy Trust Fund (SURE TF) using private reinsurance in a ratio of 1 to 3.7.
“MIGA’s commitment to supporting Ukraine at this critical time reflects our commitment to strengthening the banking system’s ability to provide commercial lending in Ukraine,’ said Hiroshi Matano, Executive Vice President at the MIGA. “These guarantees will help to increase financial inclusion and strengthen the capacity of communities, especially small and medium-sized enterprises and women entrepreneurs, in their pursuit of sustainable and resilient business development.”
The World Bank estimates that russia’s war against Ukraine has caused USD 524 billion in losses to the Ukrainian economy. The country’s recovery on such a scale is impossible without attracting private investment and implementing solutions that minimise war risks for business. MIGA plays an important role in this process by offering guarantees and insurance that create the conditions for the private sector to actively participate in Ukraine’s recovery.
Since the beginning of russia’s invasion of Ukraine in 2022, MIGA has issued new guarantees worth USD 448 million for Ukrainian projects.
Background information
The Multilateral Investment Guarantee Agency (MIGA) was established in 1988 and is a member of the World Bank Group. It facilitates foreign direct investment in emerging economies by reducing the risks of currency exchange and transfer restrictions, government breaches of contract, expropriation, wars and civil unrest.
Source: https://www.kmu.gov.ua
