On 16 May, the European Bank for Reconstruction and Development (EBRD) announced the extension of an unfunded portfolio risk-sharing facility to Ukraine’s OTP Leasing to unlock new leasing finance for Ukraine’s business sector amid the ongoing war waged by Russia.
The EBRD’s facility will cover up to 50 per cent of OTP Leasing’s credit risk on new leasing finance worth €80 million to businesses operating in Ukraine.
This credit enhancement mechanism enables OTP Leasing to finance the agribusiness sector and other critical industries, such as manufacturing, transport and logistics, supporting company operations and preserving access to critical goods as a vital step in safeguarding people’s livelihoods.
Total enabled financing under similar EBRD guarantees signed since the start of Russia’s war on Ukraine amounted to close to €900 million at end 2023.
This agreement between the EBRD and OTP Leasing is an extension of a cooperation in support of Ukrainian businesses that began in 2022. One element of the facility is a programme to enhance the competitiveness of micro, small and medium-sized enterprises (MSMEs) in the EU’s Eastern Partnership countries as part of the EU4Business initiative.
