The European Investment Bank (EIB) and the European Investment Fund (EIF) have signed new EU-backed guarantee agreements with PrivatBank and Ukreximbank to expand access to finance for small and medium-sized businesses in Ukraine. The financing comes through the EU4Business Guarantee Facility and will unlock up to €100 million through PrivatBank and up to €50 million through Ukreximbank, the EIB announced.
The two agreements will let partner banks significantly expand lending to SMEs on better terms, including reduced collateral requirements. Together, the financing is expected to support more than 2,600 businesses, helping them keep operating during the war, protect jobs, and maintain economic stability. A particular focus goes to enterprises displaced or affected by the war, businesses near conflict zones, and companies owned or managed by war veterans, internally displaced people, youth, and women, as well as startups.
“At a time of extraordinary pressure on Ukraine’s economy, ensuring continued access to finance is essential,” said Marjut Falkstedt, EIF Chief Executive. “Through our cooperation with Ukrainian banks, including PrivatBank and Ukreximbank, the EIB Group is helping ensure that small businesses receive the support they need to withstand the war and continue contributing to jobs and economic resilience.”
European Union Commissioner for Enlargement Marta Kos stressed it’s essential to help Ukrainian companies keep operating, protect jobs, and preserve economic stability.
“Investing in businesses during a war carries risks for both entrepreneurs and banks,” she said. “With these EU-backed loan agreements, the EU assumes part of that risk, making it easier for thousands of Ukrainian companies to access financing.”
Larysa Chernyshova, Deputy Chairperson of the Management Board and Chief Finance Officer at PrivatBank, called it a strategic agreement that enables scaling up SME financing with European backing. During wartime, when access to loans remains one of the key challenges for businesses, such instruments are critical to sustaining economic activity and supporting recovery. Viktoriia Masna, Member of the Management Board of Ukreximbank, said the second guarantee agreement demonstrates the proven effectiveness of this instrument. The grant component of the EU4Business Initiative will provide extra support to vulnerable entrepreneurs, including women, youth, and businesses in war-affected regions.
