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EBRD approves €2 billion framework program in response to Russia’s war on Ukraine

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The European Bank for Reconstruction and Development (EBRD) has approved a Framework Program worth up to €2 billion under the EBRD Resilience Package, the bank’s comprehensive strategic approach in response to Russia’s war against Ukraine.

“The framework will be used for various types of financing instruments for private clients, sovereigns, municipalities, municipal enterprises and other public enterprises and financial intermediaries (including public banks) in Ukraine and neighboring countries affected by the influx Ukrainian capital Refugees: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Moldova, Poland, Romania, Slovenia and Slovakia (affected countries) Sub-projects will be provided from the Bank’s ordinary resources, including the bank’s funding benefiting from donor guarantees,” the bank said.

“The overall objective of the framework is to help maintain service delivery and protect business activities in Ukraine and affected countries, with the ultimate goal of safeguarding livelihoods. For Ukraine, the framework covers all sectors, with a particular focus on energy security, vital infrastructure, food security and support to the pharmaceutical supply chain For affected countries, the framework will respond to the challenges of refugees and will mainly cover the following areas: energy security municipal and national infrastructure; and liquidity through capital markets and financial intermediaries,” he added. said.

“Due to the war against Ukraine, the market for cash and long-term financing in Ukraine is almost closed and is significantly limited in the affected countries, as local and international financial institutions tighten their risk appetite. Financing of the EBRD is provided in the extraordinary circumstances of war and effectively fills a liquidity gap while providing greater financial security caused by unprecedented adverse market conditions and heightened uncertainties,” according to the document.