Ukrgasbank joins the IFC’s Global Trade Finance Program

As part of the expansion of cooperation between Ukrgasbank and International Finance Corporation (IFC), the bank has joined Global Trade Finance Program (GTFP) with USD 20 million trade finance guarantee facility, which will increase the bank’s international trade finance business and support the efforts to help modernize the economy and boost growth.

The total value of Global Trade Finance Program amounts to USD 5 billion. The program now covers more than 500 banks in 150 countries. 

Joining GTFP enables Ukrgasbank to increase the volume of financing of its clients' foreign economic contracts and to expand the geography of the partners’ network. Moreover, the bank will be able to release significant sums of money coverage which are placed in foreign banks by the bank in order to provide confirmation of its documentary instruments.

“This new trade line is an important step in expanding our cooperation with IFC and a key milestone in our broader strategy to transform the bank,” said Kyrylo Shevchenko, Chairman of the Board of Ukrgasbank. “After a sharp decline in trade finance activities in Ukraine in 2014 and 2015, we now see that demand is increasing steadily and are planning to grow our business to not only cover the gap but also to increase volumes”. 

Dimitris Tsitsiragos, IFC’s Vice President, said, “Our partnership with Ukrgasbank is part of a wider effort to reform Ukraine’s banking sector and expand access to finance. The trade line will help ensure the continued flow of trade financing into the country, making it easier for the bank's clients to conduct cross-border trades. Ukraine’s economy is export-driven and the continued expansion of export industries is key to sustainable, long-term growth.”