The Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group has started providing guarantees for war risk insurance in Ukraine from the Trust Fund for the Support of Ukraine’s Reconstruction and Economy (SURE). The agreement on increasing the guarantee from 17.1 to 40.85 million euros between MIGA and the German bank holding ProCredit was signed in the presence of First Deputy Prime Minister of Ukraine - Minister of Economy of Ukraine Yuliia Svyrydenko in London during The Ukraine Recovery Conference-2023 (URC-2023).

The increase in guarantees from MIGA extends to ProCredit’s investment in the capital of its Ukrainian subsidiary JSC ProCredit Bank to support Ukrainian small and medium-sized businesses. The corresponding program will be valid until December 2025.

“This is the first project that will be implemented with the involvement of the Trust Fund for the Support of Ukraine’s Reconstruction and Economy. I am sure that MIGA’s military risk insurance program for investments in the Ukrainian economy will give a green light to those businessmen who are waiting for an opportunity to start work on the reconstruction of our country. After all, it is private investors who will become the basis of Ukraine’s military recovery,” Yuliia Svyrydenko stressed.

“Small and medium-sized businesses gained access to urgent working capital. The agricultural sector receives funding to continue exporting grain to global markets. In addition, Ukrainians should count on the provision of the necessary banking services,” MIGA Executive Vice President Hiroshi Matano explained.

The increase of the MIGA guarantee by EUR 23.75 million will allow ProCredit Ukraine to optimize the available capital, continue to offer the number of banking services and actually generate new positions for its clients.

“The increase in the MIGA guarantee will support our activities in Ukraine, and we see good prospects for continuing to work with our clients both now and during the country’s recovery,” Hubert Spectenhauser, Chairman of the Management Board of ProCredit General Partner AG, said.

For reference:

ProCredit Holding AG & Co. KGaA, located in Frankfurt am Main, Germany, is the growth-oriented parent company of the ProCredit group, which is comprised of the commercial banks for small and medium-sized enterprises. In Ukraine, the company owns the financial institution ProCredit Bank.

The multilateral investment guarantee agency MIGA was established in 1988. It is a member of the World Bank Group and works to promote foreign direct investment in developing economies. MIGA’s activities are aimed to reduce the risks of restrictions on currency conversion and transfer, breach of contracts by governments, expropriation, war and civil unrest. One of the main missions of the agency is to improve credit conditions for private investors and lenders. Since its establishment, MIGA has issued more than $70 billion in guarantees in 123 developing countries. Funds were used to support more than 1,000 projects.