BAKU, Azerbaijan, January 15. The European Investment Bank (EIB) and European Investment Fund (EIF), collectively the EIB Group, have signed EU-backed guarantee agreements with PrivatBank and Ukreximbank to expand financing for small and medium-sized enterprises (SMEs) in Ukraine, Trend reports via the EIB.
The agreements, supported under the EU4Business Guarantee Facility, will allow the banks to offer SMEs loans on more favorable terms, including reduced collateral requirements. PrivatBank is expected to unlock up to €100 million, while Ukreximbank could provide up to €50 million in financing. The funding aims to support more than 2,600 SMEs, particularly those displaced by the war, operating near conflict zones, or owned by war veterans, internally displaced people, women or youth-led businesses and startups.
The EIB, the European Union’s bank, has been active in Ukraine since 2007 and significantly scaled up support following the outbreak of the war in Ukraine in 2022, providing more than €4 billion in financing. Through its EU for Ukraine (EU4U) Initiative and the Ukraine Investment Framework, part of the EU’s €50 billion aid program, the EIB has focused on strengthening resilience and rebuilding critical infrastructure.
The EIF, part of the EIB Group, helps micro, small and medium-sized enterprises by improving access to finance through guarantees, equity and microfinance, promoting innovation and employment.
PrivatBank, Ukraine’s largest state-owned bank, serves over 18 million customers and operates a network of more than 1,100 branches, nearly 10,400 self-service terminals and 316,000 POS devices nationwide, employing nearly 18,000 people.