Ukraine war – Photo © European Union 2024 – source EP
(WASHINGTON, D.C.) – The European Commission and the International Finance Corporation signed a guarantee agreement Monday to support investments to help drive an inclusive and sustainable reconstruction in Ukraine.
Through the agreement the EU 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). The IFC is the largest global development institution focused on the private sector in emerging markets.
Mobilised investments under the BFP program by the private sector are expected to reach more than 500 million across sectors including essential infrastructure and goods production, promoting decarbonisation and the preservation of livelihoods.
“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,” said the Commissioner for Enlargement, Oliver Varhelyi.
In 2022, 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 mobilised 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.
