Thousands of small and medium-sized enterprises (SMEs) in Ukraine stand to benefit from new financing opportunities offered by the EU and the European Bank for Reconstruction and Development (EBRD).
In a joint initiative, both institutions are introducing the EU4Business-EBRD Credit Line to Ukraine, designed to finance projects of SMEs and help companies to make use of opportunities available under the Deep and Comprehensive Free Trade Agreement (DCFTA) between the EU and Ukraine.
The credit line will support privately-owned businesses registered in Ukraine with up to 250 employees. Individual borrowers can receive up to €3 million in Ukrainian hryvnia (UAH) equivalent.
The local currency loans will protect borrowers from risks related to foreign exchange and have long maturity periods.
Participating companies will also receive support in adjusting their production to relevant EU directives, which will allow them to access the EU single market as competitive contenders.
Ambassador Hugues Mingarelli, Head of the EU Delegation to Ukraine, said: “The EU works hard to ensure that these credit lines bring concrete benefits to the Ukrainian small and medium enterprises — and contribute to both economic growth in Ukraine and stronger economic ties between Ukraine and the EU. In 2018 Ukrainian exports to the EU grew by 15%, imports by 11.5% compared to the previous year; we see these DCFTA credit lines as instrumental in continuing these positive trends.”
In addition, the EU4Business-EBRD Credit Line will also offer grant incentives to qualified projects. Ukrainian SMEs willing to use eligible technologies, achieve full compliance with sanitary, phytosanitary and food-safety regulations or implement complex projects that comply with several EU regulations will be able to receive an incentive grant for up to 15% of the project cost.
Find out more: