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Home Ukraine

EU boosts support to small businesses in Ukraine with new finance

The FINANCIAL by The FINANCIAL
December 13, 2017
in Ukraine
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EU boosts support to small businesses in Ukraine with new finance
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The FINANCIAL — On 13 December, the European Investment Bank (EIB) and the European Investment Fund (EIF) – jointly the EIB Group – announced the signing of a guarantee agreement with the Ukrainian bank ‘Oschadbank’ to support €50 million in loans to small and medium-sized enterprises (SMEs) in the country.

This assistance was made possible thanks to EU support implemented through the EU4Business initiative.

This agreement will enable Oschadbank to facilitate access to finance for local SMEs by providing a 70% guarantee on each loan and subsequently extend financing on favourable terms, including with reduced collateral requirements. This guarantee transaction is expected to unlock additional financing for small and medium-sized businesses and ultimately sustain jobs and new business opportunities in Ukraine, according to EU Neighbours East Info.

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The guarantee is funded by the EU through the Neighbourhood Investment Facility under the EU4Business initiative.

“SMEs are the cornerstone of the Ukrainian economy,” said Ambassador Hugues Mingarelli, Head of the EU Delegation to Ukraine. “Today they need better access to affordable and long-term finance in order to continue to grow, to export to the European market and create new jobs across the country.”

EU4Business helps SMEs in the six countries of the Eastern Partnership region (Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine) to realise their full potential and boost economic growth. EU4Business support is delivered by the EIB together with other organisations such as the European Bank for Reconstruction and Development. All EU activities that support SMEs in the Eastern Partnership countries are part of EU4Business.

See also  Ukraine's Strategy Attack Moscow

 

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