EBRD Provides Guarantees to OTP Units in Ukraine
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The European Bank for Reconstruction and Development (EBRD) is providing unfunded risk-sharing facilities to back up to half of EUR 110 million of credit risk for newly originated financing by the Ukrainian units of Hungary's OTP Bank for companies in critical sectors, according to a report by state news wire MTI.
The credit provided by OTP Leasing and OTP Bank Ukraine will go to privately-owned companies operating in industries such as agriculture, food processing, transport and logistics, retail, and pharmaceuticals, the EBRD said on Wednesday.
OTP Leasing controls about 45% of Ukraine's leasing market, providing credit to big companies, SMEs, and microbusinesses across the country.
OTP Bank Ukraine is the country's ninth-biggest lender with 3.6% market share in terms of total assets. Corporate credit accounts for three-fourths of the bank's loan book.
EBRD provided similar risk-sharing facilities to the lenders covering EUR 15 mln of credit in the spring.
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