The state-owned PrivatBank has signed the first-ever agreement with the European Investment Bank and the European Investment Fund. Thanks to this agreement, small and medium-sized businesses in Ukraine will gain access to a financing portfolio with a maximum limit of €100 million.
This is reported by Finway
Conditions of the Portfolio Guarantee for Businesses
The agreement is implemented under the EU4Business Guarantee Facility Ukraine program, which provides a portfolio guarantee from the EIB group covering between 30% and 80% of the amount of an individual loan. Additionally, a first-loss guarantee of €40 million is included. The implementation of such a scheme allows for a reduction in credit risks for the bank and expands access for entrepreneurs to financing. This agreement will remain in effect until June 19, 2040.
Support for Other Banks and Program Expansion
In addition to PrivatBank, the EIB has provided a partial portfolio guarantee for Kredobank amounting to €6 million. This decision opens up the possibility of issuing new loans to representatives of small and medium-sized businesses in Ukraine. The guarantee operates under the EU4Business Guarantee Facility II program, which aims to improve lending conditions for entrepreneurs. The total budget of the program, approved in May 2025, is €300 million, of which €40 million is allocated for EIB guarantees.
The agreement provides a portfolio guarantee from the EIB group covering 30-80% of the amount of an individual loan and a first-loss guarantee of €40 million.