MIGA and ProCredit Launch Insurance Program for War Risks in Ukraine, Supporting Post-War Reconstruction

The Multilateral Investment Guarantee Agency (MIGA), a division of the World Bank Group, has initiated the provision of insurance guarantees for war risks in Ukraine. This marks the first-ever project of its kind, as reported by the Ministry of Economy of Ukraine. The primary objective of this insurance program is to grant favorable conditions for business professionals eagerly waiting to contribute to the country's reconstruction efforts, as private investors are expected to play a fundamental role in Ukraine's post-war recovery.

Under this initiative, the coverage for war risks in Ukraine will be facilitated through the Trust Fund for Reconstruction and Economy Support (SURE). In the presence of Yulia Sviridenko, the First Deputy Prime Minister and Minister of Economy of Ukraine, an agreement was signed between MIGA and the German banking holding company ProCredit, resulting in an increase in the guarantee amount from €17.1 million to €40.85 million. This signing took place during the Ukraine Recovery Conference 2023 (URC-2023) in London.

The augmented guarantee from MIGA specifically applies to ProCredit's investments in the capital of its Ukrainian subsidiary, ProCredit Bank, with the aim of supporting small and medium-sized businesses within Ukraine. This program is scheduled to remain in effect until December 2025.

Hiroshi Matano, the Executive Vice President of MIGA, emphasized the significance of this initiative, as it will enable small and medium-sized enterprises to access crucial working capital. Furthermore, the agricultural sector will receive the necessary funding to continue exporting grains to global markets. This endeavor also ensures that Ukrainians will have access to essential banking services.

ProCredit Holding AG & Co. KGaA, headquartered in Frankfurt, Germany, serves as the parent company of the ProCredit group, which focuses on the development of commercial banks catering to the needs of small and medium-sized enterprises. In Ukraine, the company operates through its subsidiary, ProCredit Bank.

MIGA, established in 1988 as a constituent of the World Bank Group, aims to encourage foreign direct investment in developing countries. Its mission involves mitigating risks associated with currency conversion and transfer, governmental breach of contracts, expropriation, war, and civil disturbances.

Since its establishment, MIGA has provided guarantees totaling nearly $70 billion across 122 developing countries, thus supporting the realization of almost 1,000 projects.

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