Credit Agricole signed agreement with EBRD to support funding of essential industries in Ukraine

At the end of November, Credit Agricole signed a risk sharing agreement with the European Bank of Reconstruction and Development (the EBRD) for EUR 50 million. It will enable the bank to offer funding to the essential industries of Ukrainian economy, in particular agriculture, food industry, transport and logistics, retail, pharmaceuticals, etc. The EBRD’s risk sharing facility will back up to 50 per cent of the credit risk. The instrument will be supported by a 50 per cent donor-funded First Loss Risk Cover as part of the resilience package arrangements of the EBRD.

Group top managers Philippe Brassac, Chief Executive Officer of Credit Agricole Group, and Michel Le Masson, head of BPI, as well as Management of Credit Agricole Ukraine – Carlos de Cordoue, chairman of the Management Board and Alexandre Tchesnakoff, Board Member, were present at the signing of the agreement on the part of Credit Agricole.

«Actions speak louder than any words. This cooperation with the EBRD means more financial support for agri-agro, one of the crucial sectors for Ukraine and food security in the world. Therefore, we will do our best to help agribusiness recover after war losses and develop again. Here you can rely on Credit Agricole,” Carlos de Cordoue, CEO of Credit Agricole Ukraine, said.

Therefore, Credit Agricole will go on supporting customers by providing the funding: in addition to loans to support the working capital, the bank is also offering trade finance instruments (guarantees, letters of credit) and leasing. Under the risk sharing agreement with the EBRD, instruments to secure loans will include guarantee of partial compensation for damages if a customer fails to repay the debt, which will serve as an additional driver to support the business.

“Credit Agricole is a long-standing and reliable partner of the EBRD. The new signed risk-sharing facility will provide support to agribusiness and other critical industries in Ukraine and will also help to safeguard food security and preserve livelihoods in the country, where core economic sectors have been severely impacted by Russia’s invasion on 24 February 2022”, - stated Matteo Patrone, Managing Director, Eastern Europe and the Caucasus, EBRD. 

Credit Agricole has a long history of cooperating with the EBRD. In particular, last year Credit Agricole joined the program  EU4Business-EBRD Credit Line, under which the bank obtained a loan of EUR 25 million from the EBRD backed by the grant funding from the European Union for 4 years to support micro-, small and medium enterprises and extend their access to leasing services. Under the program, Credit Agricole customers are eligible to get a grant (cashback) of up to 15% from the amount of funding.