The article focuses on the current projects of the #European #Bank for #Reconstruction and #Development (the #EBRD) in #Ukraine, namely in supporting #banking institutions.
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The European Bank for Reconstruction and Development has announced the provision of a loan to LLC “OTP Leasing” (“OTPL”) for financing leasing transactions with private Ukrainian companies, including small and medium-sized enterprises (SMEs) under the Bank’s SME Local Currency Programme. Hence, the loan will be provided in hryvnia in he amount equivalent to US$ 20 million for the period of 3 years.
LLC “OTP Leasing”, established in June 2008, is a 100 per cent owned subsidiary of OTP Bank Plc., a leading Hungarian financial group with around 20 per cent market share in Hungary. The Company is the market leader in providing finance and operating leases as well as providing car fleet management services in Ukraine.
It should be noted that the EBRD is currently engaged in the activity of a several banking institutions in Ukraine. On 10 April 2017, Piraeus Bank Ukraine and the EBRD have entered into a cooperation agreement under the Trade Facilitation Programme.
“The signing of the EBRD cooperation agreement is another stage of PBU strategy of financing the Ukrainian real sector of economy and endeavours to increase the volume of export-import operations of our customers. Participation in the programme expands the line of Bank’s credit products for companies in the trade finance field, in particular, import letters of credit, guarantees, other documentary instruments, confirmed by banks with investment ratings,” commented Sergey Naumov, CEO of Piraeus Bank Ukraine.
In addition, the EBRD is overseeing the transformation of the Public Joint Stock Company Oschadbank as stated in the Memorandum of understanding signed back in 2016. The EBRD agreed to facilitate the transformation to prepare Oschadbank for its partial privatization by 2018. Recently, a number of media informed that the EBRD is interested in acquiring a minority stake of Ukraine’s largest state-owned bank.
EBRD Managing Director for Eastern Europe and the Caucasus Francis Malige said that the EBRD intends to buy 10-25% of shares, depending on the price, with the view of consequently bringing it to one of the Ukrainian exchanges or selling the shares to an investor.
The Ukrainian banking system has recently undergone significant transformation. In spite of the mixed views in Ukraine and questionable state refinancing loans, most foreign experts hail the ‘clean up’ of the sector performed by the ex-NBU governor. The cooperation with the EBRD is another step to a more transparent and corruption-free banking system.