The European Bank for Reconstruction and Development (EBRD) has expanded financing for its trade facilitation program by EUR100 million, to EUR330 million, in particular to support global food security, the EBRD said in a release on Wednesday.
"The latest increase raises to EUR330 million the envelope for Ukraine under the EBRD's Trade Facilitation Program, a rise of over 40% since the war on Ukraine began on February 24. Because this is a revolving facility, the facility will support at least EUR500 million of export and import transactions by Ukrainian companies via ten EBRD partner banks, on an annual basis," the bank said on its website.
"Part of the increase is focused on food security, helping avert a global food crisis in the autumn and next year, with the EBRD deploying its strength across its agribusiness work. As well as the trade finance increase, a dedicated food security package is currently being finalized," the report says.
"The war has disrupted Ukraine's entire supply chain, closing import-export routes via the country's southern coast and to the north and east by land, and making it difficult for businesses to function normally, for farmers to plan crop financing, and for food retailers to keep shop shelves stocked. Nevertheless, an estimated 60-70% of Ukraine’s economy is functioning and quickly adjusting to operating in a war, and it is essential to maintain the flow of working capital financing through the banking system," it reads.
"To address urgent needs resulting from the war, the EBRD is prioritizing five areas within the Ukrainian economy: trade finance, energy security, vital infrastructure, food security (covering provision of liquidity to farmers via banks for the spring sowing campaign as well as to agribusiness companies and food retailers) and providing liquidity to pharmaceutical companies. Investments in all areas will involve risk-sharing with partners," the bank said.
