Kyiv, Ukraine, September 15, 2017
—IFC, a member of the World Bank Group, is extending a $20 million trade finance guarantee facility, under its Global Trade Finance Program, to Ukrgazbank to help the bank increase its international trade finance business, supporting efforts to help modernize the economy and boost growth.
The facility, extended to Ukraine’s fourth-largest bank, is a part of IFC’s broader work to support banking reform in the country. The government controls over half of Ukraine’s banking sector and has announced its plans to reform state-owned banks, strengthen them, and boost capacity and transparency, before eventual privatization.
“This new trade line is an important step in expanding our cooperation with IFC and a key milestone in our broader strategy to transform the bank,” said Kyrylo Shevchenko, CEO of Ukrgazbank. “After a sharp decline in trade finance activities in Ukraine in 2014 and 2015, we now see that demand is increasing steadily and are planning to grow our business to not only cover the gap but also to increase volumes.”
Dimitris Tsitsiragos, IFC’s Vice President, said, “Our partnership with Ukrgazbank is part of a wider effort to reform Ukraine’s banking sector and expand access to finance. The trade line will help ensure the continued flow of trade financing into the country, making it easier for the bank's clients to conduct cross-border trades. Ukraine’s economy is export-driven and the continued expansion of export industries is key to sustainable, long-term growth.”
IFC first started working with Ukrgazbank in 2016 under its Sustainable Energy Finance Advisory program. As a result of IFC’s advisory support, the bank has scaled up its green financing business, financing projects worth over 5 billion hryvnias ($200 million) and developing a robust pipeline of projects worth a total of 12 billion hrvynias ($440 million)
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IFC’s GTFP provides essential support and liquidity for trade flows through a global network of more than 500 bank partners, helping small and medium enterprises access the global trading system.
At its inception in 2005, IFC’s GTFP network had just 20 banks supporting $300 million in trade annually. The program now covers more than 500 banks in 150 countries, and last year supported more than $6 billion in trade.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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