European Bank’s Ukraine funding support
By Neill Barston18 September 2014
The European Bank for reconstruction and development (EBRD) has confirmed its backing for Ukraine, with €1 billion in investments scheduled within the country this year.
Representatives from the bank attended the latest Yalta European Strategy (YES) annual meeting in Kiev, which offered the opportunity for governments and key investors to explore potential business opportunities.
The EBRD's support for Ukraine comes as it has revised its forecast for economic growth within central Europe for this year - after positive financial trends emerged in Poland and Hungary.
As a result, forecasts for Poland were upgraded to 3% from an earlier estimate of 2.8% and the same figure for Hungary, which analysts had predicted would see only 1.6% growth. Despite the positive outlook, the EBRD warned there could be potential negative effects of a Russian ban on EU food imports.
In the wake of political unrest in Ukraine this year, the EBRD has significantly increased its activities there.
This came in response to the country launching an anti-corruption initiative in May this year that prompted the bank to return as an investor in public sector projects – including a road scheme and private project for a grain terminal at the Port of Odessa.
The EBRD has also agreed a financing facility that is designed to protect corporate clients that have been affected by economic difficulties which have arisen from political instability in the country.