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Proparco announces its intention to join the EBRD's Trade Finance Programme in support of Ukraine's economic recovery
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On the occasion of the “Ukraine Recovery Conference” held in Berlin on June 11 and 12, 2024, Proparco announced its intention to join the support programme for Ukraine set up by the European Bank for Development and Reconstruction (EBRD), which aims to secure the country's international trade and promote its economic recovery. This partnership is part of France's support for the reconstruction of Ukraine.
In Ukraine, the war has disrupted the entire supply chain. Numerous import and export routes have been closed, making it difficult for businesses to operate, farmers to plan crop financing, and food and capital goods to be supplied. This was compounded by a reduction in financing lines from foreign commercial banks, bringing trade financing in the country to a standstill.
The most active development bank in Ukraine since the start of the war, the EBRD uses its trade facilitation programme, the Trade Finance Programme (TFP), which Proparco has announced it wishes to join, alongside the U.S. International Development Finance Corporation (DFC).
By announcing its intention to join the EBRD's TFP programme, Proparco aims to increase its support for the Ukrainian private sector, as well as for the country's exporters and importers. Alongside the DFC, Proparco has signed a Memorandum of Understanding to explore the possibility of risk-sharing with the EBRD, to the tune of $50 million each.
"We are happy to be partnering with the EBRD around its Trade Finance Programme. We firmly believe that support for trade is essential, particularly in conflict-affected economies. Since the beginning of the conflict in 2022, the EBRD's Trade Facilitation Programme, has played a key role in supplying Ukraine with essential goods and supporting its economy” said Emmanuelle Riedel-Drouin, Director of Financing at Proparco.
“We warmly welcome this cooperation by development finance institutions on our trade finance work, which is a key element in our financing for Ukraine. Such collaborations will increase the scale, efficiency and quality of recovery efforts in Ukraine” said Matteo Patrone, Vice President Banking at the EBRD.