Raiffeisen Bank Aval and Ukrsotsbank, the two largest Ukrainian banks, will receive $190 mln in loans from the European Bank for Reconstruction and Development. According to their announcement, the EBRD plans to invest $125 mln in BAVL, including $75 mln as a 10-year loan and $50 mln as a seven-year mortgage loan, and $65 mln in USCB as a long-term loan. Interest rates and other details have not been disclosed.
We rank this news as POSITIVE for the development of both banks as we believe that the cost of these funds is lower than domestic funds (deposits and bonds).

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