Economic Support Program

6,97 billion EURO – Investment fund

Thanks to the risk-sharing mechanisms, EU national development banks can apply for instruments under the second pillar to mobilise investments. European Commission, with national development banks, is now investigating the possible instruments and their terms for supporting Ukraine’s rebuilding efforts via long-term investment loans secured with Ukraine Facility Guarantee (the terms of the investment are still to be announced by the EC). In this regard, two potential financial instruments may be available:

I. Direct loans for investment projects for both European and Ukrainian private partners with the following characteristics:

1. Equity: minimum 30% of the total project costs (max 70% of debt financing);
2. Size of the project: minimum EUR 5 mln, maximum not determined yet;
3. Currency: EUR (the loan has to be denominated and repaid in EUR);
4. Tenor: to be determined, possibly financing up to 10+ years.

II. ntermediated financing through local Ukrainian banks

1. Limits risks for creation and support of local market;
2. Easily implementable in the prolonged war scenario;
3. Indirectly, it can support European businesses with tailor-made solutions for specific sectors of the Ukrainian economy.

In Nordic countries, potential Institutions that will receive a guarantee under the second Pillar can be the Nordic Investment Bank, Nordic Investment Fund, Norfund, Swedfund, IFU and others…