OREANDA-NEWS. November 20, 2009. In the first half of 2009 the foreign investors have invested by 60% les funds that for the same period last year. However the international financial organizations keep on investing in Ukraine, showing more confidence in its ability to emerge from crisis, than the Ukrainian politicians, which blaming each other got used to picture the economic collapse, reported the press-centre of MEGABANK.

EBRD keeps on investing in Ukraine, despite worsening of macroeconomic indices, and the financial presence of EBRD in Ukraine is on the rise. According to data of October 1, 2009 the Bank has pledged obligations in respect of investing  for the amount of EURO 4,5 billion for 189 projects. Only in this year the volume of concluded deals will exceed EURO 1 billion.

EBRD is quite a pragmatic organization, which realizing infrastructure projects proceeds from the fact that financial investments of EBRD should bring profit as for the clients  so for itself. So why does EBRD pick Ukraine?

The fact is that unlike other International Finance Organizations (IMF, World Bank), which cooperate with the governments, EBRD orients to work with concrete private and state companies. All projects, supported by EBRD, different on scale and terms of financing, but have the trait in common: their work is transparent and meets civilized norms of business. That is the key function of EBRD: in a rough sea of the country's economic EBRD finds more or less well-off islands, increasing its sizes, making financial investments, and thus, laboriously, project after project, improves economic situation. This work has a range of positive moments for those structures, which become EBRD's partners and consequently for countries  where these organizations are situated.

Importantly, the aid get those structures, which for further growth really need additional investments. EBRD funds do not sink in officials' pockets, grant eaters and other citizens and organizations, which got used to view any foreign investment as a method to enrich oneself. Care with which European financiers check potential partners is widely known.

Thus, cooperation with EBRD is an image thing, which contributes to positive image of the state, and secondly, on some bankers' estimates the standards of work of EBRD is so high, that the very presence in shareholders structure can increase the value of organizations in times.

Expanding well-off islands of business, EBRD brings there other investors. The authority of EBRD is enough to attract to investment project other financial organizations. A typical example of work of EBRD in Ukraine is the investment in Khakriv MEGABANK,PJSC. The partner of EBRD in this project has become the German State Development Bank KfW. August 19 an agreement was signed, according to which EBRD and KfW in October acquired by 15% of MEGABANK's shares each. The total package of financingО is EURO 28,9 million.

Kharkiv MEGABANK,PJSC on the size of assets  and number of branches is a medium one (occupies 47-th place among Ukrainian banks, regional network of which accounts of 200 branches in all regions of Ukraine. However MEGABANK,PJSC has some peculiarities, which demonstrate the principles of EBRD while picking up the object of investment.

MEGABANK,PJSC for years cooperates with EBRD on lending program of small and medium businesses. For this time the Khakriv banks has managed to prove that its managerial standards are close to European ones. Therefore EBRD niot onlyt entered in to the shareholders structure of MEGABANK,PJSC, but also to attract into equity of MEGABANK,PJSC KfW, which recently has headed the rating "The safest banks of the world - 2009" according to the version of American journal Global Finance.

The standards of MEGABANK's running of business were appraised by other financial organizations. The first is International Finance Corporation (IFC), which is a part of World Bank group. July 28 IFC's management and MEGABANK,PJSC signed an agreement  for financial package of USD 20 million. The second organization is European Fund for South-Eastern Europe (ЕFSЕ), the biggest I the world investment fund involved in micro financing, October 8 provided MEGABANK,PJSC with a subordinated debt for the amount of USD 10 million. Thus a medium bank has become the only bank in Ukraine to attract four world financial institute.

Another feature of MEGABANK,PJSC is a flagship product called "Integral Clearing Center" (ICC), which was created for simplifying the procedure of utility payments. Even now thru ICC of MEGABANK,PJSC the utility services pay 12% of all payers of Ukraine. Improving of communal property of former Soviet counties is a priority of EBRD's activity.

Cooperation of financial institutions with MEGABANK,PJSC gives a positive effect not only for the bank in respect of its stability and safety, but for its clients and country as a whole. The banks' Chairman of the Management Board Olena Zhukova informed that the funds, which the bank receives from international financial organizations are channeled to lending to entrepreneurs. Thus European financial institutes have made a small but purposeful and rational investment into Ukraine's economy.

Experts opinion:
Vladimir Kachuk,head of NBU administration in Kharkov oblast:
Providing of financing and entering into equity EBRD demonstrates support to the banking sector of Ukraine in difficult times and gives a signal to the market that in Ukraine there are banks to make business with. It's worth mentioning that EBRD cooperates only with those financial organization to which it trusts and which meet its criteria. It's more lucrative for EBRD to invest financial, intellectual and technological resources in those banks, where there is a clear business plan and highly professional management.

Jean-Marc Peterschmitt, EBRD director relations with banks:
First of all we are looking for the banks which are sound and occupy strong positions at national or local level. In these banks there should be highly professional management and fine-tuned system of work. By the year end into Ukrainian banking sector EBRD will invest about EURO 500 million.

I also would like to underscore the entering of EBRD into the shareholders' structure of MEGABANK,PJSC. Despite that it's a medium bank, it's a very safe bank. And we believe that this financial institution has everything for successful development in the future.

Klaus Glaubitt, Chairman of EFSE Board of Directors:
Investment strategy of EFSE in Ukraine has a strong support from our shareholders, including the German Federal ministry of Economic Cooperation and Development. This support has played an important role in expansion of EFSE on Ukrainian market. Together we are ready to share the responsibility for stimulation of economic growth in Ukraine.

Vitaliy Strukov, Managing director of investment and banking department of Concorde Capital:
Attraction by MEGABANK,PJSC in the shareholders' structure EBRD, KfW and establishing of partner relations with IFC is the highest appraisal for the bank's management, confirmation of maximum trust from international financial institutes. The bank receives additional funds for lending the real sector of economy and providing banking services to its clients at a European level. Therefore everyone will win: bank's depositors, clients, as individuals so the legal entities, and Ukraine's economy as a whole.