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Add to Preferred SourcesSmall businesses in Ukraine will benefit from new financing opportunities of up to €120 million under a financing programme organised by the EU, the EBRD and its partner banks.
Three local banks have already signed up for the programme at this stage Raiffeisen Bank Aval will receive the equivalent of €25 million, ProCredit Bank Ukraine the equivalent of €20 million and OTP Bank Ukraine the equivalent of US$ 25 million. More local financial institutions are expected to join the programme in the future.
The funds will be on-lent to local small businesses for investments and working capital purposes. SMEs drive the local economy and create almost 80 percent of jobs in the country. The local currency loans will protect them from the volatility of the currency exchange rate.
The EU4Business initiative aims to improve Ukrainian SMEs’ access to finance and business knowledge through its advisory services, financing, and training. It also helps SMEs to create jobs by equipping them with new skills and supporting their ambitions to export to the largest neighbouring market – the EU single market – of more than 500 million consumers.
Matteo Patrone, EBRD Managing Director, Eastern Europe and the Caucasus, said: “This latest financial initiative by the EBRD and the EU clearly demonstrates our commitment to Ukraine. We are supporting the investment financing of the SME sector, the success of which is essential for the development of the national economy.”
The EBRD is the largest international financial investor in Ukraine. Since the start of its operations there in 1993 the Bank has made a cumulative commitment of almost €13.6 billion through 432 projects in the country.
Original source: EBRD
Published on 08 October 2019