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13:30 22 Sep 2022

First investments: World Bank allocates funds for Ukrainian economy development

The International Finance Corporation (IFC) allocated 30 million dollars for investments in Ukraine and Moldova

This was reported by the press service of Ukraine's Ministry of Economy.

IFC is part of the structure of the World Bank.

The ministry noted that the funds would be directed through a trust fund with 200 million dollars. It is managed by the American-Ukrainian investment company Horizon Capital.

Horizon Capital will invest in fast-growing technologies and export-oriented companies operating mainly in Ukraine and Moldova.

This will be the first IFC investment in Ukraine since the beginning of the full-scale war.

The Ministry of Economy explained that the specificity of Horizon Capital's work is that the company usually invests approximately $10-30 million in companies with a value of roughly $50-150 million.

The investment fund focuses on enterprises of the sector:

  • IT,
  • e-commerce,
  • innovative consumer goods,
  • fintech sector.

The department expects that, along with IFC, other potential investors will join investments in Ukraine shortly, including:

  • European Bank for Reconstruction and Development (EBRD);
  • German Investment and Development Corporation (DEG);
  • Swiss Investment Fund for Emerging Markets (SIFEM);
  • Dutch Entrepreneurial Development Bank (FMO);
  • Western NIS Enterprise Fund;
  • Rockefeller Foundation and others.

First Deputy Prime Minister, Minister of Economy Yulia Svyridenko noted that the start of Horizon Capital's investment in Ukraine should be a positive signal for other potential investors.

We will remind you that the World Bank is working on an insurance instrument for military risks in Ukraine.

Also, in November, the World Bank may approve a package of additional financial assistance for Ukraine for 1 billion dollars.

In addition, it will consider the allocation of funds to finance the budget deficit and infrastructure restoration.

It should be noted that during 30 years of cooperation with Ukraine, the World Bank approved 70 loans totaling more than 14.4 billion dollars and 2.1 billion euros, of which 11.8 billion dollars have been received so far. USA and 1.2 billion euros.

Read Rubryka's timeline of war: current news on Ukraine's defense against russia's aggression.

Category:
Economics

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