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IFC and OTP Bank concluded an agreement on risk sharing in the amount of EUR 20 million

IFC and OTP Bank concluded an agreement on risk sharing in the amount of EUR 20 million

The International Financial Corporation (IFC) and OTP Bank concluded an agreement under the Risk Sharing Program to support small and medium-sized businesses in Ukraine, including in the agricultural sector and for women business owners. According to its terms, IFC will share with the bank half of the risks for the aggregated credit portfolio in the amount of up to EUR 20 million, granted to enterprises of key segments of the Ukrainian economy.

This is the first risk-sharing agreement in Ukraine under the IFC’s Small Loan Guarantee Program, supported by the European Commission, and will help preserve jobs, restore supply chains, and increase export and tax revenues.

Private companies that have been operating on the market for more than 1 year can participate in the program, without restrictions on the types of activities, provided that they comply with the requirements regarding environmental and social risks. Funding under the program can be obtained in the form of term loans, credit lines, overdrafts and certain types of documentary instruments. Accordingly, financing is provided for replenishment of working capital, investment purposes, issuance of letters of credit and guarantees. The minimum amount of financing is the equivalent of EUR 25,000.

The terms of the program also apply to loans provided under the "Affordable Loans 5-7-9" program, in which OTP Bank is among the 10 participants - leaders in terms of the volume of the issued portfolio. Thus, since the beginning of its participation in the program in 2020, OTP Bank has financed Ukrainian enterprises for a total amount of more than UAH 5.6 billion. According to the results of the Q1 2023, the loan portfolio of OTP Bank under this program almost reached UAH 4 billion, of which, as of April 1, 2023, the bank provided 50% (about UAH 2 billion) to the agricultural sector.

As Volodymyr Mudryi, CEO of OTP Bank, Chairman of the Council of the Association of Banks of Ukraine, commented after concluding the agreement: "This agreement demonstrates IFC's desire to cooperate with OTP Bank as a reliable and strong financial partner. Foreign investment is critical to supporting the recovery of the Ukrainian economy, and we are pleased to be one of the leading banks providing such opportunities to the country. This is the first risk sharing project in Ukraine within the framework of the IFC Small Loan Guarantee Program, and it will support small and medium-sized business clients of OTP Bank."

Also, an agreement was concluded between IFC and the leasing company "OTP Leasing" LLC in the amount of up to EUR 20 million.

For more information, visit www.ifc.org.


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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.

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