EBRD and OTP Bank signed a new risk sharing agreement in the amount of EUR 40 million
In continuation of partnership relations, the European Bank for Reconstruction and Development and OTP Bank signed another agreement under the risk sharing program, which will ensure sustainable support for domestic business by providing new financing to Ukrainian enterprises. The additional program, signed on November 20, 2023, will allow borrowers to receive financing for the following purposes: replenishment of working capital and investment loans, documentary transactions and factoring.
According to the terms of the agreement, the EBRD will share with OTP Bank 50% of the risks of the new loan portfolio in its maximum amount - EUR 40 million, which OTP Bank will provide to its borrowers.
This agreement between the EBRD and OTP Bank is an extension of cooperation in support of Ukrainian business, which began in 2022 and is aimed at ensuring food security and maintaining business stability in the conditions of a full-scale invasion of the aggressor on the territory of Ukraine.
A special feature of this year's agreement is the added program to increase the competitiveness of SMEs in the EBRD's Eastern Partnership countries. The program was created by the EBRD in cooperation with the EU in order to promote the financing of investments in micro, small and medium-sized enterprises to support sustainable investments in energy-saving technologies, in particular to meet the needs of local agricultural producers in updating modern agricultural machinery of global brands. In this case, it is possible to compensate the borrower a part of the financed expenses for the purchase of equipment.
The size of the compensation depends on the type of assets and usually amounts to 20% of the expenses financed by credit funds.
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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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