Second Export Develoment Project

closed

The Second Export Development Project (EDP2) will provide a new credit line, backed by the Bank's variable spread US Dollar loan of 20 years of maturity, including a 5-year race period, and guaranteed by the Ukrainian government on behalf of the Ukraine, to UEB (State Export-Import Bank of Ukraine), a state-owned foreign trade development bank, for further on-lending to eligible financial intermediaries. The main project emphasis will be on UEB operating as wholesale export finance and guarantee institution, and a wholesale line of credit to other participating banks will be the anchor component of the project. The project components thus include: 1) A wholesale line of credit to UEB, which UEB will on-lend to other eligible private banks or participating financial intermediaries (PBs). These PBs will be selected according to financial and export orientation eligibility criteria. The PBs will in turn make medium term working capital, or long term investment loans to eligible private exporters to increase their export potential. 2) UEB institutional development-related procurement of information technology (IT) equipment and consulting services. 3) An unallocated amount where amounts would be allocated among the above components, will remain flexible, and could be reallocated between the component categories during implementation as necessary. While Technical Assistance (TA) has no specific needs identified ex-ante for the project, there is likely however, to be some TA required by UEB in developing products and services for activities during the project implementation period. These will be funded as necessary either through UEB's own resources, and/or bilateral grant funds. The project will also include unallocated funds in contingencies which could be allocated for TA needs identified in future during implementation.