27 july 2006Ukreximbank and World Bank launch EDP-IIThe Board of Executive Directors of the World Bank has approved the Second Export Development Project (EDP2) for Ukraine.
Joint Stock Company the State Export-Import Bank of Ukraine (the JSC UkrEximbank) would be the borrower and the main implementation agency of the Project, which stipulates USD 154.5 million loan to be provided by the World Bank to the JSC Ukreximbank.
EDP 2 will be a successor to the previously EDP 1 project successfully implemented in joint efforts of the World Bank and the JSC Ukreximbank in 1997-2004.
The EDP2 will assist in achieving two objectives. The Project will support export and real sector growth in Ukraine by providing medium and long-term working capital and investment finance to Ukrainian private exporting enterprises. The Project also aims to further improve the ability of the Ukrainian banking sector to provide financial resources to the enterprise sector through additional development of financial intermediation by providing a wider variety of better quality lending products.
The main emphasis of the new project will be on Ukreximbank operating as wholesale export finance and guarantee institution. A wholesale line of credit to other private banks will be the anchor component of the project. The World Bank will provide a line of credit to Ukreximbank, which Ukreximbank will on-lend to eligible private banks. The private banks will in turn make medium term working capital or long term investment loans to eligible private exporters to increase their export potential.
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