IFC entered into new agreements as part of a $2 billion initiative launched in December 2022. IFC will use the funds in its account, along with guarantees and concessional funding (or grants) from donor governments.
The new agreements provide for the provision of financial and advisory assistance to the private sector of Ukraine. These agreements involve financial contributions from the US and the UK.
According to IFC estimates, Ukraine's private sector could cover the financial needs for the country's reconstruction in the amount of at least $140 billion over the next 10 years.
It is noted, in particular, that the UK will contribute $30 million to the ERA IFC program to support energy security. This funding is expected to mobilize $100 million in investment to support renewable energy and energy efficiency in Ukraine;
The British Development Finance Institute (BII), the US Development Finance International Corporation (DFC), and the Multilateral Investment Guarantee Agency (MIGA) will share IFC's trade risks, which will increase the capacity of IFC's Global Trade Finance Program in Ukraine from $200 million to almost $300 million.
