The European Commission and European Investment Bank (EIB) Group have moved to support the private sector in Ukraine by seeking to unlock more than €1 billion in lending to small and medium-sized enterprises (SMEs).
At the Ukraine Recovery Conference in Berlin, the Commission and EIB Group signed agreements for two guarantee facilities totalling €190 million. They are designed to enhance access to finance for SMEs in Ukraine by sharing risk with Ukrainian local banks and financial intermediaries.
These programmes are expected to unlock over €1 billion in lending to businesses in Ukraine, enabling them to secure credit on favourable terms and increase their resilience.
This financial package will help Ukrainian SMEs cope with the impact of Russia’s invasion and reorient them towards the EU economy. It will also support startups, women in business, young people and regions as well as firms owned by or employing internally displaced people (IDPs) and veterans.
Building on the success of the EU4Business Guarantee Facility announced at the Ukraine Recovery Conference in 2023, the EIB Group continues to work closely with the Commission and financial institutions from EU Member States to provide extended and coordinated European support for the Ukrainian economy. In this context, risk-sharing instruments are vital as they support the continuity and survival of private-sector businesses across the country.