The Board of Directors of the International Finance Corporation (IFC), which is part of the World Bank, has supported a USD 2 billion financing program for Ukrainian business. This was announced by First Deputy Prime Minister – Minister of Economy of Ukraine Yuliia Svyrydenko.
“The main areas of implementation of this program are trade financing for Ukrainian banks, agricultural sector, and small and medium-sized businesses. It is also very important that the management of the corporation supported the proposal to allow IFC to work with state-owned companies. This was done as an exception for Ukraine, as IFC primarily does not work with state-owned companies,” said Yuliia Svyrydenko.
According to the Minister of Economy of Ukraine, the IFC Board of Directors also approved two separate projects for the private sector:
“Direct lending and trade finance support from IFC as well as insurance from MIGA until the end of the war is a positive sign for many investors who are considering whether to invest in Ukraine right now. It is expected that such financing will mobilize private credit capital, as IFC usually finances no more than 30% of the project cost, involving commercial banks and other IFIs in the financial consortium. Thus, the total amount of projects of Ukrainian enterprises that can be financed may exceed USD 6 billion,” concluded Yuliia Svyrydenko.
The International Finance Corporation (IFC) is a member of the World Bank Group. One of the most important activities of the IFC is to mobilize private capital for development primarily in low-income countries, as well as in countries with instability and conflict.
Ukraine has been a member of IFC since 1993.
In September 2022, IFC allocated USD 30 million for investments in Ukraine and Moldova.