EU4Business: Over 100 Ukrainian small and medium-sized enterprises receive additional funding through loans

Photo: European Union
Photo: European Union

A total of 112 enterprises received UAH 380 million (nearly €12 million) in loans during the first year of the programme of the German-Ukrainian Fund (GUF) to support investment projects of small and medium-sized enterprises (SMEs).

Lending in the national currency was possible thanks to the EU's EU4Business initiative, which provided €5 million to cover potential losses from exchange rate fluctuations.

According to the programme terms, Ukrainian entrepreneurs can receive loans in hryvnia equivalent to €250,000 for a term of up to six years and at an interest rate of 15% through the GUF’s partner banks. This rate is much lower than the current level of market rates.

The programme is a part of the EU4Business initiative, the active phase of which started in September 2017.

SMEs in agriculture attracted by far the most loans (77% of all SMEs funded), followed by manufacturing businesses (18%) and hotel and restaurant enterprises (5%). Entrepreneurs from Chernihiv, Vinnytsia, Odesa and Dnipropetrovsk regions benefited most from the credit programme.

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Press release