On May 2, the Executive Board of the World Bank approved the decision to grant the Ukreximbank a loan amounting 150 million USD as a part of the Long-Term Funding Project.
What’s it about?
The goal of the Long-Term Funding Project is to improve the access of Ukrainian export-oriented small and medium-sized companies to long-terms loans needed to boost investments and working capital. Such long-terms are hard to find on the market. The Project is in line with the Partnership Strategy of the World Bank for Ukraine for the period from 2012 till 2017. The Project is focused on improving access to mid- and long-term export-oriented financing. The loan of the World Bank will be granted to the Ukreximbank which shall provide loans to other Ukrainian banks. These banks are obliged to provide loans to Ukrainian small and medium-sized companies participating in the project.
What’s the advantage?
Access to long-term funding will enable Ukrainian small and medium-sized companies to unfold their potential to the full extent. This step shall trigger the growth of exports from Ukraine as well as the overall growth of the Ukrainian economy.