Ukrgasbank and IFC Sign Joint Agreement Around SME Banking Services in Significant Boost to Ukrainian Economic Growth

WASHINGTON, April 24, 2018 /PRNewswire/ --

• Deal positions Ukrgasbank as a market leader in SME banking services
• Ukrgasbank becomes the first Green Bank in the region with strong support from the International Finance Corporation
• Agreement expected to help create new jobs and drive much needed economic growth in Ukraine
• Agreement signed ahead of the expected privatization of Ukrgasbank in 2018-2019

An agreement signed over the weekend between Ukrgasbank, a state-owned Ukrainian bank, and the International Finance Corporation around SME banking services, promises to significantly boost economic growth and job creation in Ukraine.

The agreement is expected to position Ukrgasbank as the most important bank in the Ukrainian SME sector, and will see the bank help SMEs in a variety of ways including restructuring and business model support, training, facilitating access to credit, and streamlining operational systems.

The SME sector is an increasingly important and growing sector in Ukraine, and independent experts have marked the potential profitability of SME business in the country at ?5.7 billion. As a result of this agreement, Ukrgasbank is expected to increase its earnings in the service sector by 300-400% in the next four years.

The announcement of the agreement is an important step in Ukrgasbank's objectives, and follows past agreements with the IFC, a member of the World Bank. This includes agreements around green finance and providing easier access to funding for companies intending to implement projects in renewable energy, energy efficiency, and environmental protection.

The signing of the latest agreement comes ahead of an expected privitization of Ukrgasbank in 2018-2019. This is due to the strong performance of the bank over recent years, which has seen Ukrgasbank become the fourth biggest in Ukraine by assets, and the number one Eco Bank.

Speaking ahead of the signing of the agreement Kyrylo Shevchenko, Chairman of the Board of Ukrgasbank said, "Ukrgasbank is a success story in the region having become the first and only green bank with strong support from the International Finance Corporation. The signing of this agreement is an important step forward in building up our international reach.

"Ukrgasbank has raised its SME Business virtually from scratch, having started in 2015, and have multiplied it several times. The support of the IFC will create momentum for Ukrgasbank to expand our product offerings in SME segment and become the number one bank for SMEs in Ukraine, creating new jobs and driving much needed economic growth. 

"Ukrgasbank is very proud of our relationship with the IFC, who we have cooperated with for several years on a number of common projects." 

Notes to Editors 

Ukrgasbank is a state-owned bank in Ukraine with more than 23 years of experience in the Ukrainian banking sector providing both traditional and innovative products and services. The bank serves around 900 000 private and over 46 000 corporate and SME customers. The bank operates through a network of some 240 branches across Ukraine and has a strategic focus on financing clean energy.

SOURCE Ukrgasbank