The European Bank for Reconstruction and Development (EBRD) has amended the loan agreement for the project for the electrification of the Dolynska – Mykolaiv - Kolosivka railway line to allow it to repurpose an additional EUR 98.8 million out of the loan to provide liquidity to the Ukrainian Railways joint-stock company (Ukrzaliznytsia) to enable the company to meet its critical needs.
Ukraine’s Minister of Finance Serhii Marchenko, the EBRD’s Managing Director for Eastern Europe and the Caucasus Matteo Patrone, and Ukrzaliznytsia’s Board Chairman Oleksandr Kamyshin signed the relevant document on Thursday, the CFTS portal reports, citing the Interfax Ukraine news agency.
A guarantee from the government of France or another G7 country will secure the repurposed part of the EBRD loan.
"The damage and destruction of the railway infrastructure and the loss of Ukrzaliznytsia’s rolling stock have had a negative impact on ensuring the smooth operation of society. Therefore, increasing the EBRD loan to support Ukrzaliznytsia’s liquidity will help ensure the stability of its operations during wartime," Marchenko said, commenting on the agreement.
As reported, a similar amendment to the agreement was signed earlier this year (on 10 June). The amendment provided for repurposing EUR 50 million out of the EBRD loan to provide liquidity to Ukrzaliznytsia. The EBRD has thus repurposed a total of EUR 148.5 million out of this loan to provide liquidity to Ukrzaliznytsia.
