EBRD launches credit program for small and medium-sized enterprises in Ukraine

The European Bank for Reconstruction and Development (EBRD) and the European Union are launching the EU4Business—EBRD credit line in Ukraine as part of a joint initiative to finance small and medium-sized enterprise (SME) projects.

The Bank reports that this credit line provides support to private companies that are registered in Ukraine and have up to 250 employees.

Borrowers can obtain long-term loans up to three million euros in UAH equivalent, which will protect borrowers from currency risks.

The EBRD reported that the credit funds will be provided through the State Export-Import Bank of Ukraine (“Ukreximbank”), which is allocated 22 million euros for this program and LLC “OTP Leasing” (10 million euros). Additional resources of the European Union, which is about 28 million euros are expected in the near future and will be available to other local financial institutions that will join the credit line.

“The participating companies will also be supported in bringing their production in line with the requirements of the EU directives, which will allow them to compete in the EU market,” the Bank added.

Also, for projects under the EU4Business—EBRD credit line, which will meet certain requirements, there will be an opportunity to receive incentive grants.

Ukrainian SMEs that are ready to introduce certain technologies, achieve full compliance with sanitary and phytosanitary requirements, requirements in the field of food safety, will be able to receive a stimulating grant to cover up to 15% of the cost of projects.

“The EU tries to ensure that such credit lines are useful for Ukrainian small and medium-sized enterprises, as well as contribute to economic growth in Ukraine and strengthen economic ties between it and the EU. In 2018, the volume of exports of Ukrainian goods to the EU increased by 15%, and import of goods from the EU increased by 11.5%. We believe that credit lines contribute to the preservation of these positive trends,” the Head of the EU Delegation to Ukraine Hugh Mingarelli stated.

Read the original article here.

As it was earlier reported, the funds of the EBRD will be used to renew the trolleybus fleet in Dnieper.