Ukrainian SMEs will benefit from a new EUR 10 million local currency lending facility to be operated through Ukrainian banks.
ProCredit Bank signed an agreement with the German-Ukrainian Fund under the SME Promotion Program, funded by the German Government in cooperation with EU4Business.
The facility provides lending at 15% per year in Ukrainian hryvnia and will be managed by German state development bank, KfW.
What the loans are for
The loans will help Ukrainian SMEs:
• Buy and modernise large machinery and equipment
• Purchase, build or rebuild premises, and
• Replenish working capital to expand production.
The fund is open to: small companies of maximum 50 staff and EUR 5m annual income, and; medium-sized enterprises with maximum 250 employees and EUR 10m in revenues.
Four sectors have priority:
• Agriculture, forestry and fisheries
• Processing industry
• Temporary placement and organisation of food, and
• Supply of electricity, gas, steam and air conditioning.
Long-term finance in local currency – an EU4B objective
Berend de Groot, head of cooperation at the EU’s Ukraine Delegation, explained: "Ukrainian SMEs are eager for local currency loans provided under reasonable terms, and such loans currently are almost unavailable in the market.
“Improving access to affordable long-term finance in local currency is one of the goals of the EU4Business initiative.
“Therefore, we are pleased to team up with KfW under this programme for the benefit of Ukrainian SMEs and, indirectly, the whole economy."
