Small and Medium-Sized Businesses Will Receive Concessional Loans for a total of USD 100 million under a New IBRD Loan Program
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On April 19, 2021, the Cabinet of Ministers adopted a resolution on "Some issues of implementation of the joint investment project with the International Bank for Reconstruction and Development "Additional Financing for Counteracting COVID-19 within the Project of Access to Long-Term Financing".
The project "Additional Financing for Counteracting COVID-19 within the Project of Access to Long-Term Financing" envisages the attraction of a USD 100 million loan from the IBRD to provide export-oriented small and medium-sized enterprises with access to long-term financing. It will increase Ukraine's export potential that will stimulate GDP growth amid a decline in global economic activity caused by the coronavirus pandemic.
Considering the increased demand from potential financial institutions in the crisis conditions caused by COVID-19, the Project will be timely, expected, and have a positive impact on the development of export-oriented small and medium enterprises, expansion of the real sector production capacities, will contribute to the preservation of the existing and creation of new jobs, especially in the context of overcoming the consequences of the crisis.
At the same time, at today's meeting, the government supported the order of the President of Ukraine on the establishment of a Ukrainian delegation to participate in the negotiations with the IBRD and the authority of the Chairman of the Board of the State Export-Import Bank of Ukraine to sign the Guarantee Agreement between Ukraine and the IBRD.