Financial sector news

Several leading banks have signed an Addendum to the Memorandum on Bank Lending for Energy Infrastructure Rehabilitation Projects aimed at detailing the terms of financing to make it as clear, accessible and systematic as possible.

The signing of the Memorandum itself, which took place on June 25, was the first step towards broad financing and practical implementation of a large-scale program to restore the country's war-affected power system.

According to the Addendum, the basic interest rate on the loans will be 13.5% per annum or UIRD3M + 0.5% for the first year of financing. Starting from the second year, the rate will be floating and will not exceed UIRD12M + 3%.

To ensure transparency and accessibility of information, each bank participating in the Memorandum undertakes to publish loan product standards on its official websites. These standards will take into account the client's risk profile and lending conditions, such as the type of project, level of own contribution, loan amount, term, availability and sufficiency of collateral, as well as sureties or guarantees.

Governor of the National Bank of Ukraine Andriy Pyshnyi  during an expanded meeting of the Presidium of the Congress of Local and Regional Authorities chaired by President of Ukraine Volodymyr Zelenskyy said,that 19 Ukrainian banks have now joined the memorandum. According to the document, they will be able to provide preferential lending for energy infrastructure restoration projects.

"This is an unprecedented, historic moment. We managed to unite 19 banks under this memorandum, which provides support for the restoration of energy infrastructure. An important element is that this memorandum united state, commercial and capital development banks at the same time," emphasized Andriy Pyshnyi.

Addendum to the MEMORANDUM OF BANK LOANS FOR ENERGY INFRASTRUCTURE REPAIR PROJECTS