BAKU, Azerbaijan, January 15. The European
Investment Bank (EIB) and European Investment Fund (EIF),
collectively the EIB Group, have signed EU-backed guarantee
agreements with PrivatBank and Ukreximbank to expand financing for
small and medium-sized enterprises (SMEs) in Ukraine, Trend reports via the
EIB.
The agreements, supported under the EU4Business Guarantee
Facility, will allow the banks to offer SMEs loans on more
favorable terms, including reduced collateral requirements.
PrivatBank is expected to unlock up to €100 million, while
Ukreximbank could provide up to €50 million in financing. The
funding aims to support more than 2,600 SMEs, particularly those
displaced by the war, operating near conflict zones, or owned by
war veterans, internally displaced people, women or youth-led
businesses and startups.
The EIB, the European Union’s bank, has been active in Ukraine
since 2007 and significantly scaled up support following the
outbreak of the war in Ukraine in 2022, providing more than €4
billion in financing. Through its EU for Ukraine (EU4U) Initiative
and the Ukraine Investment Framework, part of the EU’s €50 billion
aid program, the EIB has focused on strengthening resilience and
rebuilding critical infrastructure.
The EIF, part of the EIB Group, helps micro, small and
medium-sized enterprises by improving access to finance through
guarantees, equity and microfinance, promoting innovation and
employment.
PrivatBank, Ukraine’s largest state-owned bank, serves over 18
million customers and operates a network of more than 1,100
branches, nearly 10,400 self-service terminals and 316,000 POS
devices nationwide, employing nearly 18,000 people.
