War-affected Ukrainian businesses to get €143 million financing boost with EU guarantee to ProCredit Bank Ukraine

• EIB Group teams up with ProCredit Bank Ukraine to unlock up to €143 million in favourable financing for Ukrainian small and medium-sized enterprises (SMEs).
• EIF provides guarantee enabling ProCredit Bank Ukraine to offer loans to over 700 companies, with focus on businesses affected by Russia’s war.
• Operation backed by EU under the Ukraine Investment Framework.

A range of Ukrainian businesses will be eligible for favourable financing of up to €143 million as a result of a guarantee that ProCredit Bank Ukraine is receiving from the European Investment Bank (EIB) Group.

The European Investment Fund (EIF), which is part of the EIB Group, is providing the guarantee, which will enable ProCredit Bank Ukraine to offer loans on advantageous terms to more than 700 small and medium-sized enterprises (SMEs) in the country. The initiative will focus on support for companies affected by Russia’s war, veteran-led businesses and women and young entrepreneurs, helping them maintain operations, protect jobs and pursue growth-boosting investments.

The EIF guarantee is backed by the European Union and covers part of the risk that ProCredit Bank Ukraine takes when lending to companies, allowing it to offer more loans on better terms including lower collateral requirements and longer repayment periods. Much of the financing is projected to be available in Ukrainian hryvnia, making it easier for local businesses to borrow.

“Ukrainian entrepreneurs continue to keep their businesses running and protect jobs despite the war,” EIB Group Vice-President Karl Nehammer said today during a visit to Ukraine. “With this EU-backed guarantee, we are helping them access the financing they need to remain resilient, continue investing and contribute to Ukraine’s economic recovery.”

The agreement is the third under the EU-backed Ukraine Facility Partial Portfolio Guarantee, which aims to make financing more accessible to Ukrainian businesses during the war. Through participating local banks including ProCredit Bank Ukraine, the programme is projected to make more than €1.1 billion in financing available to businesses across the country.

“The EU stands firmly behind Ukraine’s private sector and its vital role in the country’s economic resilience and recovery,” said Gediminas Navickas, Chargé d'affaires a.i. of the EU Delegation to Ukraine. “Through EIB Group’s Partial Portfolio Guarantee supported via the Ukraine Investment Framework, we are helping Ukrainian businesses access more affordable financing to safeguard jobs, invest and grow, even in wartime conditions.”

ProCredit Bank Ukraine will be able to support as many as 715 Ukrainian businesses with the EIF guarantee.

“Supporting Ukrainian businesses today is about much more than providing finance. It is about preserving the country’s economic capacity and creating the foundation for future growth and recovery. The European Investment Fund guarantee strengthens our ability to finance SMEs that continue to invest, create jobs and adapt despite the war, ensuring that European support translates into real economic activity across Ukraine,” said Oleksandr Povshednyi, Chairman of the Management Board of ProCredit Bank Ukraine.