Small and medium-sized enterprises (SMEs) in Ukraine now have access to a range of loans in Hryvna, offered by local banks under the EU4Business initiative, in partnership with European Financial Institutions.
The new loan opportunities, which have become available following a series of agreements signed with local banks in the past few weeks, are all part of the second phase of the EU4Business SME Finance Facility, which aims to stimulate local currency lending, especially for small businesses that are not earning foreign currency or cannot afford the high costs of borrowing in local currently at current market conditions.
Under the Facility, three European financial institutions – the EBRD, EIB and KfW – are extending loans or guarantees to local partner banks to lend on to local SMEs, while the EU provides funds for covering foreign exchange risks.
Thanks to EU4Business, SMEs can now get local currency loans in the following banks:
1. ProCredit bank (SME Finance Facility II by KfW, EIB and EBRD)
2. Kredobank (SME Finance Facility II by KfW)
3. Ukrgazbank (SME Finance Facility II by KfW)
Depending on the bank and the programme, the loans are available to SMEs in a range of sectors ranging from agriculture to manufacturing, and with a range of criteria, maturity options and lending ceilings.
- For KfW partner banks, see here for more details.
- For KfW agreement with Ukrgazbank, see here for more details.
- For KfW agreement with ProCredit Bank, see here for more details.
- For KfW agreement with KredoBank, see here for more details.
- For EIB agreement with ProCredit Bank, see here for more details.
- For EBRD agreement with ProCredit Bank, see here for more details.
In addition, EU4Business, in cooperation with the German government and the Kyiv City administration (SME Finance Facility II with KfW), has launched an interest rate subsidy programme for SMEs in the Ukrainian capital, cutting interest rates from 15% to 7.5% – the lowest rates available in Ukraine. See here for more details, and here for loan eligibility and criteria.