EC and IFC sign agreement on investment guarantees for Ukraine: investments expected to reach €500 million
The European Commission (EC) and the World Bank Group's International Finance Corporation (IFC) have signed a guarantee agreement to support investments that will contribute to Ukraine's inclusive and sustainable reconstruction.
Source: press service of the European Commission
Details: Under the agreement, the EU will provide the IFC with financial guarantees of up to €90 million to support investments in Ukraine through the IFC Better Futures Programme (BFP).
Mobilised private sector investment under the programme is expected to exceed €500 million in a variety of sectors, including essential infrastructure and goods production, as well as promoting decarbonisation and preserving livelihoods.
Quote: "With the EFSD+ guarantee, we are moving fast to implement innovative and impactful projects and back private sector companies, fulfilling our commitment to mobilise private capital to support Ukraine's economy and reconstruction," said Alfonso García Mora, IFC Vice President for Europe, Latin America and the Caribbean.
"This EFSD+ guarantee will help rebuild the country's infrastructure, support its business sector, and strengthen the resilience of its economy, reaffirming the European Union's commitment to stand by Ukraine in this time of crisis," said Olivér Várhelyi, Commissioner for Neighbourhood and Enlargement.
In 2022, the IFC launched a US$2 billion Economic Resilience Action (ERA) Programme to help Ukraine's private sector. Since then, IFC has provided over US$650 million in financing and raised more than US$400 million to support the tech sector, agribusiness, key exports and imports, and SME finance in Ukraine.
Background:
According to the IFC and the World Bank, key reforms could help Ukraine raise up to US$130 billion in private funding for reconstruction.
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