International Finance Corporation (IFC) and PrivatBank signed a $100 million Risk-Sharing Agreement and an agreement on a new $20 million IFC trade finance guarantee line.
The $100 million risk-sharing agreement will help expand lending to micro, small, and medium enterprises (MSMEs) across various sectors, including agribusiness, manufacturing, and logistics, with a particular focus on women-owned businesses. The initiative is supported by the governments of France and the Netherlands.
PrivatBank has also joined IFC’s Global Trade Finance Program (GTFP), which helps local banks expand trade finance by providing guarantees for payments and managing payment risks. These measures aim to strengthen the recovery and resilience of Ukraine’s private sector.
Under the agreement, IFC will provide PrivatBank with a $20 million trade finance guarantee line, enabling the bank to finance more import- and export-oriented companies, expand partnerships with international banks, and support Ukrainian businesses in accessing new global markets. As Ukrainian enterprises increasingly expand their international activities, this instrument will be key to accelerating growth.
“We highly value our steady and ongoing cooperation with IFC, which provides critical support to Ukrainian businesses and enables the economy to remain resilient and grow despite the many challenges of wartime. MSMEs continue to be the backbone of Ukraine’s economy and provide livelihoods for countless households across the country, including in frontline regions. Ensuring that MSMEs have access to the financing they need to grow is one of the Government’s top priorities,” — said Pavlo Kartashov, Deputy Minister of Economy, Environment and Agriculture of Ukraine.
For reference
The International Finance Corporation (IFC) is part of the World Bank Group. One of IFC’s key missions is to mobilize greater volumes of private capital to support development, especially in low-income countries and in states affected by fragility and conflict.
Ukraine has been a member of IFC since 1993.
Source: https://me.gov.ua
