By Olga Rosca
The European Bank for Reconstruction and Development (EBRD) and the European Union are providing new funds to support micro-, small and medium-sized enterprises (MSMEs) in Ukraine. The EBRD will lend the hryvnia equivalent of €25 million to Ukrgasbank, a key local lender, for loans to local companies to upgrade their processes and equipment and to advance sound health and safety practices.
At least 70 per cent of the loan will go to financing investments in green technologies.
Borrowers are eligible to receive grant incentives and technical assistance on successful investment projects, funded by the EU under its EU4Business initiative. The support is part of the EU4Business-EBRD credit line – a joint financing instrument designed to boost the competitiveness and export ambition of local businesses.
Investments in high standards and quality products will allow businesses to compete more successfully on both the local and international markets. The EU4Business-EBRD credit line programme is also available in Georgia and Moldova and has recently been extended to cover the entire Eastern Partnership region.
Ukraine is a top-three investment destination for the EBRD. In the past two years alone, the Bank has committed €2 billion to the economy. The EBRD finances infrastructure, energy efficiency and energy security, agricultural and industrial projects, as well as smaller businesses. The investments are combined with support for policies that promote a more enabling business environment.