EBRD promises extra trade finance support for Ukraine
The European Bank for Reconstruction and Development (EBRD) has unveiled fresh trade finance support for businesses affected by Russia’s invasion of Ukraine, both in the war-ravaged country and neighbouring nations.
As the conflict approaches its fourth week, the EBRD has announced a €2bn resilience package and says various forms of financial aid will be made “rapidly available” to Ukrainian businesses.
These include payment deferrals, emergency liquidity finance, trade finance, and potentially even help for companies looking to relocate.
An EBRD spokesperson tells GTR there is no specific amount earmarked for trade finance purposes, but the lender will weigh up demand from partner banks and the “obviously the level of risk of each proposed transaction”.
They add the new trade finance lines will boost imports of fuel, medicine and other important goods, with financing disbursed through Ukrainian commercial banks who will on-lend to their clients.
The move follows a proposal by the EBRD board of directors on March 1 to suspend access to its financing and expertise by Russia and its ally, Belarus, “open-endedly”. The bank’s governors were given 30 days to vote on the proposal.
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