For the purposes of establishing of co-operation with foreign participants of the financial market, reduction of country-specific and commercial risks and provision for sufficient money back guarantees and guarantees of the due application of funds, we offer to employ the mechanism of syndicated lending for financing of projects in Ukraine.

In case of syndicated lending, the Ukrainian and foreign banks interested in the implementation of a certain project of one of their clients will co-operate in a group that will accept the granted finance. The parties to such group shall define the "Leading Bank" that will supervise the progress of the implementation of the project, make decisions on the distribution and utilisation of resources within the project and control all corresponding financial flows. Each participant of financing process will assume certain risks of the end loan debtor implementing the project.

Such mechanism is most attractive for the potential foreign investors/lenders in connection with the opportunities:

• to diversify the national and corporate risks to the maximum possible extent;
• to provide for an additional control over the progress of implementation of the project (information can be received from several sources);
• to establish direct relations/co-operation with new potential partners in the domestic Ukrainian monetary market (which would be impossible in case of making applications for finance, in particular, by mid-size and small banks separately).