Credit Agricole Ukraine signed a 50 million EUR risk-sharing agreement

At the end of November 2023, Credit Agricole Ukraine signed a 50 million EUR risk-sharing agreement with the European Bank for Reconstruction and Development (EBRD) under the Resilience and Livelihoods Framework. This will enable the bank to support capital investments of micro, small and medium-sized enterprises to upgrade their technology and equipment. The transaction is supported by the US and EU. Companies will be able to receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their investment projects. It will focus on key sectors of the Ukrainian economy, in particular agriculture, food industry, and retail.

The agreement was signed on behalf of Credit Agricole Ukraine by Carlos de Cordoue, Chairman of the Management Board of Credit Agricole Ukraine. Philippe Brassac, Chief Executive Officer of Credit Agricole S. A, Michel Le Masson, Head of International Banking Development division of Credit Agricole S. A were also present.

“For most of the past thirty years, Credit Agricole in Ukraine has focused on supporting the entire Ukrainian agricultural ecosystem. The bank has a 12% market share in Ukraine, and agribusiness financing accounts for 50% of the bank’s total loan portfolio. We believe in the resilience and great potential of the Ukrainian agricultural sector. In partnership with the EBRD, we will do our best to help agribusiness to recover and develop after the war losses”, said Carlos de Cordoue Chairman of the Management Board of Credit Agricole Ukraine.

The EBRD’s Resilience and Livelihoods Guarantee (RLG) will cover up to 50 per cent of the credit risk in newly originated sub-loans. The project comes in the exceptional circumstances of the ongoing war in Ukraine and serves as an important risk-mitigation tool to enable financing of critical industries.

Credit Agricole Ukraine holds one of the leading positions in supporting agribusiness in Ukraine. Since the beginning of the war, the bank has issued 2.7 billion hryvnias of loans for agribusiness under the state program “Affordable Loans 5-7-9%”. The bank also participates in the Government’s program of State Guarantees, under which it has issued almost 1.3 billion hryvnias. In addition, Credit Agricole Ukraine loan portfolio for agribusiness is 0.5 billion hryvnias under the financing program with the EBRD.