The European Fund for Southeast Europe (EFSE) has provided CreditWest Bank, Ukraine, with a financing package of €6 million, including the equivalent of €3 million in local currency, which will allow the bank to expand into small and medium-sized enterprise (SME) financing with particular focus on agricultural businesses.
Having started as a corporate bank, CreditWest Bank is diversifying into the SME segment to increase its outreach as well as local businesses’ access to financing by offering dedicated financial solutions. The bank has already demonstrated its commitment to fostering business and economic development in the country – an endeavour that resonates with EFSE’s own mission of supporting sustainable economic growth in the region.
EFSE Board Chairman Christoph Tiskens said: “We are excited at this opportunity to work with CreditWest Bank in tailoring credit solutions that meet customers’ needs and business capacities. This new partnership is another step in EFSE’s commitment to investing in the economic development and prosperity of Ukraine.”
“Partnering with EFSE is an important step for our bank in pursuing the development strategy in Ukraine, which is largely founded on servicing small and medium enterprises. We trust that with the funding support of EFSE, we will be better positioned to cater to the needs of SMEs and agricultural businesses in a tailored manner, supporting their productivity, competitiveness and viability,” commented Temporarily Acting Chairman of the Board of CreditWest Bank, Igor Tykhnonov.
The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission under the EU4Business initiative.
EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as finance primarily for micro and small enterprises (MSEs) – but also for private households in the form of home improvement loans – is channelled to these loan customers through local partner lending institutions.