WASHINGTON, DC, Aug. 30, 2017 (GLOBE NEWSWIRE) -- The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, has committed financing support to two projects in Ukraine that will promote lending to small and medium businesses that are critical to economic stability and growth.
- OPIC committed $10 million to Ukraine’s Agroprosperis Bank (AP Bank) to support lending to small and medium enterprise (SME) farmers in Ukraine, who are a critical source of food production in the country, but often struggle to access financing to purchase seeds, spare parts and fuel for the machinery that is used in planting and harvesting.
- OPIC is also supporting $7.8 million in financing to Ukraine’s Bank Vostok to help expand the bank’s SME lending portfolio to reach underserved populations such as businesses located in rural areas.
OPIC’s commitment to supporting private sector development in Ukraine has resulted in quadrupling OPIC’s investment portfolio there since 2014, across sectors ranging from financial services to agriculture and energy.
This week, OPIC President and Chief Executive Officer Ray W. Washburne is visiting Ukraine, his first official visit with OPIC, as part of an official delegation led by U.S. Deputy Secretary of Energy Dan Brouillette. Ukraine is a foreign policy priority for the U.S. and OPIC continues to work on projects that will support further private sector-led development in the country.
“OPIC plays an important role promoting stability in Ukraine through projects that directly impact the country’s small and medium sized businesses,” said Mr. Washburne. “Limited access to financing is one of the main challenges these businesses face and OPIC financing will help local banks expand lending to the small businesses that create jobs and contribute to economic growth.”
OPIC’s current investment portfolio in Ukraine totals $522 million across 18 projects.
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The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.
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