Western Ukrainian businesses receive funds from EBRD and EU
EBRD, Kyiv, Ukraine,
Tue, Mar 31, 2020
- EBRD four-year €7.5 million loan to Bank Lviv
- Long-term local currency lending to support Ukrainian SMEs
- Project supported by EU with incentive grants under EU4Business initiative
Small and medium-sized enterprises in western Ukraine will benefit from a new loan of up to €7.5 million to Bank Lviv provided under the EU4Business-EBRD Credit Line. The loan will be available for disbursement in Ukrainian Hryvna, which will protect Bank Lviv’s borrowers from foreign currency-related risks, and offer long maturities.
The funds are provided in the context of the Deep and Comprehensive Free Trade Agreement (DCFTA) between the European Union (EU) and Ukraine. EU grants will be offered as investment incentives to eligible enterprises to reduce the cost of their capital expenditure on upgrades of technology and production processes to comply with EU standards and regulations.
Bank Lviv and its clients will also receive technical assistance from the EU4Business-EBRD Credit Line consultants, who will assist with projects preparation and implementation.
Bank Lviv CEO Ashot Abrahamyan said: «The deal we signed today with the EBRD represents a convincing example of what real partnership means in difficult times. As a bank, we are committed to continue providing financing to SMEs, especially to agricultural producers. We are grateful to the EBRD and the EU for their commitment and readiness to support our institution and our clients, so that we can move forward together»
Bank Lviv is a regional bank providing banking services to SMEs and private clients across western Ukraine. It is well established in the Lviv, Ivano-Frankivsk, Lutsk, Rivne, Ternopil and Uzhgorod regions as well as the capital Kyiv.
The EBRD is a leading institutional investor in Ukraine and to date has committed more than €14.54 billion in over 460 projects to the country.