EBRD Investment in Ukraine to Top $1Bln by Year-End: Bank’s President
The European Bank of Reconstruction and Development's investment in Ukraine will reach 1 billion euro ($1.3 billion) by the end of 2014, EBRD President Suma Chakrabarti said addressing the Parliamentary Assembly of the Council of Europe on Thursday.
"By the end of August, we had invested almost 620 million euros [more than $783 million] in 19 projects and are on course towards a billion euros of investment in Ukraine in 2014," Chakrabarti said.
He also reminded the assembly that the European Bank predicted Ukrainian economy could contract by 9 percent in 2014.
"Our forecasts also say that Ukraine's economy could shrink by 9 percent this year and a further 3 percent in 2015. The economic situation is clearly very serious," Chakrabarti said.
The bank pledged to continue supporting Ukraine in several sectors, including energy, infrastructure, transportation.
The EBRD chief pointed to the ripples that Ukraine's economic crisis had sent across the region.
"We are also seeing an impact on other countries in the region. The weak Russian economy was already affecting remittances to Central Asia and other CIS countries, even before the exacerbation of sanctions," Chakrabarti said.
As a result of the ongoing political crisis in the country, Ukraine is currently on the verge of a default. Kiev authorities are trying to rescue the country's economy with international loans, including a $17 billion loan from the International Monetary Fund. The IMF approved a loan to Ukraine in May in the form of a two-year stabilization program so that the country would be able to clear its debts, carry out economic reforms and recover.