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EBRD, EU allocate EUR 70 mln to support SMEs in Ukraine

EBRD, EU allocate EUR 70 mln to support SMEs in Ukraine
8 of October 2019 г.
The European Bank for Reconstruction and Development (EBRD) and the European Union are providing EUR 70 million for the development of small and medium-sized enterprises (SMEs) in Ukraine.

Credit funds will be provided through three commercial banks, in particular, Raiffeisen Bank Aval, ProCredit Bank, and OTP Bank.

A respective agreement on the financing of SMEs for EUR 70 million between the EBRD and partner banks was signed at the EBRD office in Kyiv on Tuesday, October 8, according to an Ukrinform correspondent.

The program improves access to finance for small and medium-sized businesses and is supported by EU grant funding under the EU4Business initiative, which ensures the operation of Business Support Centers in Ukraine.

At this stage, three local banks joined the program. In particular, Raiffeisen Bank Aval will receive EUR 25 million in hryvnia equivalent, ProCredit Bank - EUR 20 million in hryvnia equivalent, and OTP Bank – EUR 25 million in hryvnia equivalent.

These funds will be provided for investment, as well as for the working capital of local small businesses. Hryvnia loans will protect companies from foreign currency fluctuations.

Since the start of its operations in Ukraine in 1993, the EBRD has made a cumulative commitment of almost EUR 13.6 billion through 432 projects in the country.



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