On May 28, the World Bank's Board of Executive Directors approved a $ 100 million loan to Ukreximbank to be used for the special-purpose medium- and long-term lending to export-oriented small and medium-sized enterprises.
The decision of the Board confirms the key role of Ukreximbank as the key financial institution in attracting funds from international financial institutions to systematically support the domestic economy through long-term investment lending. It is also a sign of confidence in the actions of the new management to implement anti-crisis measures and the strategy of increasing the loan portfolio of the bank's borrowers, which operate in foreign markets.
“Additional financing to counter COVID-19 under the Access to Long-Term Financing Project will be used to support small and medium-sized Ukrainian enterprises affected by the pandemic by providing loans to finance working capital needs and investment projects.
This issue is particularly acute in conditions of economic uncertainty, which cannot be addressed with the available short-term instruments. Therefore, an important option of the joint project of the World Bank and Ukreximbank is the possibility of providing loans for a period of 3-5 years for companies, which business is complicated by COVID-19 crisis consequences, which is critical for retaining jobs, maintaining existing production facilities and markets, especially for exporters", - said Ievgen Metsger, Chairman of the Management Board of Ukreximbank.
The current Access to Long-Term Financing project for a total of USD 150 million has been implemented since June 2018 and has already provided a significant positive impact on the SME sector. More than 50 enterprises were financed within the framework of the Project, mostly in agriculture and food industry with traditionally strong competitive advantages of Ukrainian exporters. Loans were also provided to companies engaged in the production of mining equipment and refrigeration equipment, dental and electrical equipment, plastic packaging, woodworking, carpet production, etc.