The FINANCIAL — The World Bank’s Board of Executive Directors on May 2 approved a US$ 150 million loan for the Access to Long Term Finance Project that will support Ukraine’s export-oriented small and medium enterprises (SMEs).
“Ukraine has creative and unique business potential and can produce high quality competitive goods,” said Satu Kahkonen, World Bank Country Director for Belarus, Moldova, and Ukraine. “However, many obstacles limit Ukraine’s ability to export. Lack of quality financing is one of them. Access to longer term finance for small and medium enterprises will help the country grow its exports and contribute to reviving economic growth in Ukraine.”
The Joint Stock Company Ukreximbank is expected to implement this project by providing sub-loans to participating banks which, in turn, will pass on the financing to various SMEs in Ukraine. The SMEs will be selected on the basis of their financial health and capacity to develop a sound business export model, according to the World Bank.
The World Bank is one of Ukraine’s major international partners, with projects supporting basic public services that directly benefit ordinary people in areas such as water supply, sanitation, heating, energy, roads, social protection, and health, as well as private sector development.
Since Ukraine joined the World Bank in 1992 the Bank’s commitments to the country have totaled over US$12 billion in about 70 projects and programs.