The European Commission and IFC have just signed a guarantee agreement to support investments that will help drive an inclusive and sustainable reconstruction in Ukraine.
Through the agreement, the European Union will provide up to €90 million in financial guarantees to support investments in Ukraine to IFC, a member of the World Bank Group, as part of IFC’s Better Futures Program (BFP). Mobilized investments under the program by the private sector are expected to reach more than €500 million across sectors including essential infrastructure and goods production, promoting decarbonization and the preservation of livelihoods.
“Support from the European Commission has been and will continue to be instrumental in our efforts to extend and scale up crucial investments in Ukraine,” said Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean. “With the EFSD+ guarantee, we are moving fast to implement innovative and impactful projects and back private sector companies, fulfilling our commitment to mobilize private capital to support Ukraine’s economy and reconstruction.”
Commissioner for Neighbourhood and Enlargement, Olivér Várhelyi, added: “This agreement is yet another example of our excellent cooperation with IFC in our effort to boost investments in Ukraine. This EFSD+ guarantee will help rebuild the country’s infrastructure, support its business sector, and strengthen the resilience of its economy, reaffirming the European Union’s commitment to stand by Ukraine in this time of crisis.”
In 2022, the IFC launched the $2 billion Economic Resilience Action (ERA) Program to support Ukraine’s private sector. Since then, IFC has provided financing of over $650 million and mobilized over $400 million to support the tech sector, agribusiness, critical exports and imports, and SME finance. It complements the World Bank Group’s joint efforts to help businesses stay afloat and enable the government to provide essential services and make critical repairs.
Total EU support to Ukraine and its people since the beginning of Russia’s invasion of Ukraine amounts to over €88 billion. This includes contributions from EU institutions and Member States for economic, financial, military, and humanitarian support, as well as hosting Ukrainian refugees in EU Member States.
See also: 🔴 LIVE UPDATES | Humanitarian response to Ukraine crisis
