April 24 (Bloomberg) -- The European Bank for Reconstruction and Development may grant loans in Ukraine with the right to convert into local currency by its partner banks, said Olivier Descamps, EBRD’s Managing Director for Turkey, Eastern Europe, the Caucasus and Central Asia.
“We take part in the risk long term,” Descamps told reporters in Ukrainian capital Kiev today. “Provided that the bank would assure guarantees for half of exposure.”
EBRD may start two such loan programs this year with some of its 12 partner banks in Ukraine, Descamps said, adding that EBRD will issue loans to banks in foreign currency and allow lenders to convert it into hryvnia. The loans will be provided for projects in energy savings and renewable energy.
The EBRD, which has invested more than 5.9 billion euro ($7.79 billion) in Ukraine since 1991, is pushing for legislative changes to allow it to lend in hryvnia to help its clients avoid foreign-exchange risks.
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