The World Bank’s Board of Executive Directors yesterday approved a US$ 154.5 million loan for theSecond Export Development Project (EDP2).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.
“Ukrainian
exports have been the primary engine of economic growth in the last
several years, and continued growth of Ukrainian exports is a national
priority of the Ukrainian government. There is therefore the need to
continue to enhance and sustain the export competitiveness of Ukrainian
enterprises”, said World Bank Director for Ukraine, Belarus and Moldova Paul Bermingham.
Wider
availability of sufficient long-term finance would be an essential
input for such growth to take place in the future on a sustainable
basis. Apart
from the availability of finance, there is a widely perceived need for
a dedicated Ukrainian Export Credit and Guarantee Agency able to
provide specific export credits, credit insurance and guarantee
products to all Ukrainian exporters. The EDP2 will assist in achieving
both of these objectives.
The
loan will be provided to Ukreximbank at the Bank's standard interest
rate for LIBOR-based, single currency dollar loans, repayable in 20
years, including a 5-year grace period, and will be guaranteed by the
Ukrainian government. Since Ukraine joined the World Bank in 1992, Bank commitments to the country total about US$ 5 billion for 36 projects and programs.
