EIB Group provides EU-backed guarantees to expand finance for war-affected businesses in Ukraine

• Two new EU4Business guarantee agreements have been signed with PrivatBank and Ukreximbank to strengthen access to finance for Ukrainian small businesses.
• More than 2 600 businesses are expected to benefit, with a focus on enterprises owned or managed by war veterans, internally displaced people, women and young entrepreneurs.
• This is part of the European Union’s broader support for small businesses under the €50 billion Ukraine Facility.

The European Investment Bank (EIB) and the European Investment Fund (EIF) – together the EIB Group – have 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 to significantly 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,
• 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. 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.

European Investment Fund Chief Executive Marjut Falkstedt said: “At a time of extraordinary pressure on Ukraine’s economy, ensuring continued access to finance is essential. Through our cooperation with Ukrainian banks, including PrivatBank and Ukreximbank, the EIB Group is helping ensure that small businesses receive the support they need to withstand the war and continue contributing to jobs and economic resilience.”

European Union Commissioner for Enlargement Marta Kos said: “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. With these EU-backed loan agreements, the EU assumes part of that risk, making it easier for thousands of Ukrainian companies to access financing.”

Deputy Chairperson of the Management Board and Chief Finance Officer at PrivatBank Larysa Chernyshova said: “This is a strategic agreement for us, enabling the scaling up of SME financing with the backing of European institutions. During wartime, when access to loans remains one of the key challenges for businesses, such instruments are critical to sustaining economic activity and supporting the country’s recovery. We are grateful to our European partners for helping us provide businesses with much-needed access to affordable financing. It is especially important that this is a long-term agreement, which once again confirms the partners' faith in Ukrainian business.”  

Member of the Management Board of Ukreximbank Viktoriia Masna said: “The signing of the second guarantee agreement with the EIB Group demonstrates the proven effectiveness of this instrument in supporting Ukrainian small and medium-sized enterprises. In the context of the ongoing war, access to finance remains critical for business continuity. The guarantee will enable Ukreximbank to expand lending on more accessible terms, reduce collateral requirements and channel financing to business that are preserving jobs and contributing to the resilience and recovery of Ukraine’s economy. In addition, the grant component of EU4Business Initiative will provide extra support to vulnerable entrepreneurs, including women, youth and business in war-affected regions. Such support from the EU is vital as it demonstrates EU solidarity with Ukraine, strengthens business resilience amid aggression and promotes equitable recovery.”