The European Bank for Reconstruction and Development (EBRD) has announced a new initiative to provide loans through a risk-sharing mechanism. These loans, offered by ProCredit Bank, aim to support small and medium-sized enterprises in Ukraine.
This is reported by Finway
According to the plans, ProCredit Bank will provide sub-loans totaling up to €60 million, which will be used for investments in energy production and storage, as well as for enhancing energy efficiency. Approximately 70% of these financial resources will be directed towards projects that align with the principles of transitioning to a “green” economy.
Additionally, ProCredit Bank will allocate up to 20% of the sub-loans to finance long-term capital investments for micro, small, and medium-sized enterprises, particularly for upgrading technologies and equipment to meet European standards. It is expected that up to 8% of the total investment volume will be directed towards the residential sector, including households and homeowners’ associations.
Grant support is available for such borrowers, funded by the government of the Netherlands through the EBRD Special Fund (ESSF). This support will cover between 10% and 30% of investment costs. Additional investment incentives will also be available for businesses and households that have suffered the most significant losses due to the war.