OREANDA-NEWS. On January 20, 2009 Economics Minister of Ukraine Bohdan Danylyshyn participated in an annual review of the project portfolio of the European Bank for Reconstruction and Development.

Bohdan Danylyshyn stressed that such reviews had become a significant instrument for joint elaborating of principles and approaches to cooperation between Ukraine and EBRD, inasmuch as its development still remains one of the topmost priorities of the Government’s activity. 

“For Ukraine the Bank for many years stays the largest and most effective investor. Assistance rendered by the EBRD facilitates economic growth of Ukraine, reforming and modernization of transport domain, power energy, energy saving and development of municipal infrastructure,” the head of economic department maintained.

According to the Economics Minister, the Bank’s resources are characterized with reliability, goal-orientedness, favourable conditions of providing loans, so the projects financed by the EBRD reach the set-up goals of the development.

We highly appreciate that over this period the Bank is constantly improving the portfolio of projects in Ukraine, boosting amounts of financing, Bohdan Danylyshyn noted.

So, for 15 years of cooperation only in 2008 the Banks portfolio for Ukraine has upped by almost 20.5%, while general amount of resources provided has reached Eur 4.1 bn for realization of 170 projects, 73% out of which goes to the private sector and 27% - for the state sector of economy.

Moreover, the head of economic department stressed on importance of the EBRD annual meeting held in March of the last year, which as the Minister explained, had stirred up the development of relations with private foreign investors, boost of amounts of investments necessary for further economic development of our state.

Besides, according to Bohdan Danylyshyn, in present conditions Ukraine is especially interested in future reliable significant resources on the part of international financial organizations to reduce an impact of the world financial crisis and to prolong financing of the projects of infrastructure development, as they are characterized by low profitability and at the same time ensure significant contribution into the economic growth.

“We have managed to activate cooperation with IMF and achieve success in their support to the economic policy of Ukraine’s Government,” the Minister of Economics of Ukraine explained.

Bohdan Danylyshyn informed recently, with an aim to render Ukraine an assistance to secure financial and economic stability the IMF approved a two-year Stand-By (SBA) program with USD 16.4 bn, while the World Bank in December of 2008, within the scope of Political Development Loan, provided with funds to the tune of USD 500 mn to finance Ukraine’s State Budget and support of structural and institutional reforms.

As was reported earlier to response to the spread of finial crunch the Council of EBRD Directors in December of 2008 approved an antirecessionary budget for 2009 which envisaged increased financing of operations by 20% - approximately up to Eur 7bn. Half a billion out of this sum is envisaged for financing of projects in the Central and Eastern Europe (according to the EBRD website). 

Bohdan Danylyshyn informed, according to the Cooperation Program with the Bank, the second review of the state of preparing and realization of the EBRD projects in Ukraine takes place and is called to:

- review the state of credit portfolio and implementation of understandings of the previous review, included into the Protocol of review of the portfolio in April of 2008;

- consider the progress achieved in the process of preparing and realization of projects in the sectors, to discuss problems and ways to solve them;

- coordinate propositions concerning initiating new projects of the EBRD in Ukraine;

- on results of the discussion to summarize the material and prepare a Protocol of review of the portfolio and measures of realization of the achieved understandings.

To wind up with his statement, the Minister of Economics Bohdan Danylyshyn expressed his hopes the event would be fruitful and effective for both parties and wished a constructive dialogue.

The EBRD side was represented by Olivier Descamps, Business Group Director, South Eastern Europe, Central Asia and the Caucasus and the EBRD Director for Ukraine A.Kuusvek.

In their turn, members of the European Bank for Reconstruction and Development expressed readiness to facilitate Ukraine in the development of investment projects.