EIB to allocate more funds to infrastructure restoration in Ukraine

WORLD  05 July 2022 - 09:32

During the Ukraine Recovery Conference in Lugano, Switzerland, the European Investment Bank (EIB) proposed to extend assistance to Ukraine by a new EU-Ukraine Gateway Trust Fund.

EIB Vice-President Teresa Czerwinska said at the conference on July 4 that it is an additional instrument for the restoration of critical infrastructure, according to Interfax Ukraine.

The mechanism of functioning of this fund has been developed, she said, adding that it would play an important part in attracting investment.

Czerwinska recalled that the EIB investment portfolio in Ukraine was €7 billion ($7.3 billion), and it has allocated around €700 million ($731 million) since the beginning of the war.

Earlier on July 4, Reuters reported, referring to an EIB document, that the EIB proposed a funding structure previously used during the COVID-19 pandemic to help rebuild Ukraine with up to €100 billion ($104.3 billion) of investment.

The EU-Ukraine Gateway Trust Fund (E-U GTF) would seek to have an initial €20 billion ($20.8 billion) in contributions from EU countries and the EU budget in the form of grants, loans and guarantees, the agency said.

The guarantees in particular would have a multiplier effect, leading to infrastructure projects totalling some €100 billion ($104.3 billion), the document said, about half of Ukraine's more immediate needs.

The European Commission must first give its assent, with a majority of EU countries having to approve the plan.

Caliber.Az