EBRD provides $80 million subordinated loan to Bank Forum
July 20, 2009
Credit is latest step in EBRD support for Ukrainian banking sector
The EBRD is providing a subordinated loan of $80 million to JSC Bank Forum in a continuation of its support for the Ukrainian banking sector during the financial land economic crisis.
The ten-year subordinated loan will support the capital base of Bank Forum, which is part of the German Commerzbank group.
Forum has been a long-standing partner of the EBRD in Ukraine and it plays a key role in the country in SME, Trade Facilitation, energy efficiency and other lending programmes supported by the Bank in the country.
The mix of Tier I capital provided by Bank Forum’s shareholders, the additional capital that will be provided before the end of this year, and Tier II capital from the EBRD will help ensure that the bank has the capital it needs to withstand the economic downturn in Ukraine. More broadly, it will support a level of continued financial intermediation, while contributing to improving overall market confidence.
This transaction is a part of EBRD’s crisis response in Ukraine, which envisages investments of over ?500 million in the recapitalisation of the Ukrainian banking system by the end of 2009.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 July 2009, it had committed ?4.3 billion through 179 projects.
Company — Forum Bank
Full namePUBLIC JOINT STOCK COMPANY "BANK FORUM"