PrivatBank together with the International Finance Corporation (IFC) signed agreements aimed at expanding crediting opportunities for micro, small and medium-sized businesses, as well as at supporting the entry of Ukrainian companies into new international markets.
These are two key agreements: a $100 million risk-sharing agreement and an Issuing Bank agreement providing for a $20 million trade financing guarantee line from the IFC.
The $100 million risk sharing agreement is aimed at expanding the access of small and medium-sized businesses to credit in various industries, including the agricultural sector, processing industry, and logistics. Special emphasis is placed on enterprises founded by women: their share in the loan portfolio is expected to be 35%.
The Issuing Bank Agreement opens the possibility for PrivatBank to join the IFC Global Trade Finance Program (GTFP), which supports banks in increasing cross-border trade financing thanks to payment risk guarantees.
As part of this partnership, IFC provides PrivatBank with a guarantee line of $20 million, which will allow it to finance a larger number of companies involved in imports and exports. This will help the bank establish broader partnership relations with international financial institutions and support Ukrainian enterprises in entering world markets.
“The start of cooperation between IFC and PrivatBank is a truly historic event. These are the first agreements between our institutions. The partnership with IFC will help support Ukrainian business in scaling and entering new markets and, as a result, will contribute to the economic stability of the country, said the chairman of the board of PrivatBank Mikael Bjorknert.
According to estimates, IFC’s risk sharing program in Ukraine, including agreements with PrivatBank, will allow businesses to obtain additional loans totaling about $1 billion.
