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The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has signed an agreement with Aval Bank, one of Ukraine’s largest locally-owned banks, to provide up to US$50mn in the form of a tier II qualifying subordinated loan.
This is IFC’s second investment in Bank Aval and represents the IFC’s largest investment in the financial sector of Ukraine.
Edward Nassim, IFC director for Central and Eastern Europe, notes, “This investment represents IFC’s strategy to support local banks and financial institutions that adhere to international best practices. IFC’s new investment in Aval is expected to further strengthen the bank’s standing among Ukrainian banks and set example for other to follow.”