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  • Ministry of Economy: Roundtable discussion on new opportunities for attracting financing for business takes place
    Ministry of Economy of Ukraine, posted 02 May 2024 12:41

    The Ministry of Economy of Ukraine and the Kyiv School of Economics organized a roundtable discussion "Business Development as the Main Driver of Ukraine's Economic Recovery" on financing instruments for the development of Ukrainian business. During the event, Deputy Minister of Economy of Ukraine Volodymyr Kuzio spoke about new opportunities to attract investment under the Ukraine Investment Framework, which had been established under the Ukraine Facility program.

    The event has been organized with the support of the USAID/UK aid project "Transparency and Accountability in Public Administration and Services/TAPAS".

    Thus, the second component of the Ukraine Facility, the Ukraine Investment Framework (UIF), aims to mobilize investment for Ukraine's recovery and development. By offering a variety of risk-sharing instruments, blended finance, and grants, the UIF is intended to help attract financing for economic growth.

    "The EUR 9.3 billion Ukraine Investment Framework will help to intensify the work of international financial institutions in Ukraine by providing businesses with access to additional financing. To this end, within the framework of the program, a EUR 7.8 billion Ukrainian guarantee mechanism is being created to cover the risks associated with working in a country at war. This will allow IFIs to expand their existing financing programs for Ukrainian businesses and launch new instruments, making capital raising more accessible to entrepreneurs. The remaining EUR 1.5 billion from the EU will also be used for mixed business financing and technical assistance,” Volodymyr Kuzio noted.

    Thus, under the UIF, the European Union will provide funding to international financial organizations, which, in turn, will expand their programs and create new instruments for Ukraine, as well as provide support to Ukrainian partner banks. Volodymyr Kuzio added that the first stage of UIF implementation is expected to expand the programs of IFIs operating in Ukraine and involve Ukrainian partner banks.

    "The UIF will allow businesses to reduce collateral requirements for lending, attract mixed financing that combines grants and loans, and receive technical assistance in preparing applications for financing and finalizing investment projects.

    Both state-owned and private companies will receive such opportunities," said Volodymyr Kuzio.

    Under the UIF, operations for the private sector will be initiated by IFIs based on the demand of private companies. In turn, public projects will be initiated by the Government as part of public investment management and a single list of projects.

    The final terms and programs for the first stage of the UIF will be approved at the Ukraine Recovery Conference 2024 to be held in Berlin on June 11-12.

    "In the next stages, we expect the program to be further expanded and even more companies to get access to financing. At the same time, the key task for this is to create an up-to-date list of investment projects that will allow us to clearly define our needs and priorities. In the future, this list will be the basis for negotiations with IFIs and other partners to improve financing programs," emphasized Volodymyr Kuzio.

    The event gathered representatives of the European Union, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the Polish Development Bank (BGK).

    Business representatives joined the discussion in a question-and-answer format, having the opportunity to discuss directly with representatives of the Government and IFIs the existing obstacles and priorities for attracting financing, as well as to suggest ways to improve the available instruments and expand them.

    The Ministry of Economy of Ukraine, with the support of the Kyiv School of Economics and leading consulting companies, continues to collect and analyze investment projects for the Ukraine Recovery Conference 2024 and to form a national database of economic development projects. To apply, please follow the link: https://t.ly/jCdkT