EBRD and Citi Ukraine Launch $100M Lifeline for War-Hit Businesses
The European Bank for Reconstruction and Development (EBRD) and Citi Ukraine have signed a new US$ 100 million revolving credit facility. The agreement aims to support local businesses struggling due to the ongoing war. Funds will be provided in Ukrainian hryvnia to help meet urgent financial needs.
The facility marks the second collaboration of its kind between the EBRD and Citi Ukraine. A similar agreement was reached a year earlier. This time, the funds will assist companies with liquidity, short-term working capital, and trade-finance requirements.
Over the past three decades, the EBRD has invested more than €21 billion in Ukraine across over 600 projects. Since Russia's invasion in February 2022, the bank has directed an additional €6 billion into the country's real economy. These efforts focus on strengthening resilience and supporting private-sector businesses during wartime.
Citi Ukraine, which serves around 500 multinational firms and large Ukrainian corporations, has remained active in the country throughout the conflict. Alexander McWhorter, Citi's Country Officer for Ukraine, noted that the facility would help companies expand despite the challenges of war. Arvid Tuerkner, EBRD Managing Director for Ukraine and Moldova, added that the local-currency financing would address critical needs for private-sector businesses.
The EBRD has also worked closely with domestic stakeholders to improve access to local currency and stabilise financial markets in Ukraine. Both institutions have reaffirmed their commitment to supporting the country's economic recovery and resilience against the war's impact.
The new credit facility will provide essential financial support to Ukrainian businesses. By offering loans in local currency, the EBRD and Citi aim to ease liquidity pressures and sustain economic activity. The partnership reflects ongoing efforts to bolster Ukraine's private sector amid continued conflict.
