On 14 January, the European Investment Bank (EIB) and the European Investment Fund (EIF) – together the EIB Group – signed new EU-backed guarantee agreements with PrivatBank and Ukreximbank to expand access to finance for small and medium-sized enterprises (SMEs) in Ukraine.
The financing was made possible by the support of the European Union under the EU4Business Guarantee Facility.
The two agreements will enable partner banks significantly to expand lending to SMEs on more favourable terms, including reduced collateral requirements. In total, the new guarantees are expected to unlock up to €100 million in financing through PrivatBank, and up to €50 million through Ukreximbank.
Together, this financing is expected to support more than 2,600 SMEs, helping them continue their activities during the war, safeguard jobs and play an essential role in maintaining economic stability and driving recovery.
“It is essential to help Ukrainian companies continue operating, protect jobs, and preserve economic stability. Investing in businesses during a war carries risks for both entrepreneurs and banks,” European Union Commissioner for Enlargement Marta Kos said. “With these EU-backed loan agreements, the EU assumes part of that risk, making it easier for thousands of Ukrainian companies to access financing.”
A particular focus has been placed on enterprises displaced or affected by the war, businesses operating near conflict zones and companies owned or managed by war veterans or internally displaced people, as well as youth- and female-led businesses and startups.
