State-owned PrivatBank and the European Bank for Reconstruction and Development have initiated a collaboration under a risk-sharing programme. Within the framework of this programme, Ukrainian entrepreneurs in critical sectors will receive 240 million euros.
According to the signed agreement, the EBRD will provide a guarantee of 60 million euros. The non-financed risk-sharing instrument covers up to 50% of the credit risk, totaling up to 240 million euros, for new financing by PrivatBank.
The risk-sharing agreement between the EBRD and PrivatBank comprises two components. Under the first component (minimum of 80% of the total risk-sharing portfolio), the risk-sharing instrument will facilitate access to financing for working capital and investment purposes for micro, small, medium, and large enterprises operating in critically important sectors such as:
- Agriculture and agricultural services
- Food and light industries
- Production and construction services
- Transport and logistics
- Tourism and culture
- Retail trade
The second component will support up to 20% of loans with risk-sharing for long-term investments by private small and medium-sized businesses in ecological technologies compliant with EU standards. Eligible sub-borrowers will also receive EU-funded technical assistance and investment incentives upon completion of their investment projects.
The signed agreement with the EBRD is the first international agreement for PrivatBank.
"As a market leader in serving micro, small, and medium-sized businesses, cooperation with the EBRD is a logical step for us. Together, we can do much more for the development of the Ukrainian economy," stated Gerhard Boesch, CEO of PrivatBank.
The advantages of the programme include the opportunity to obtain funding and develop, renew, or strengthen one's own business through investments in more environmentally-friendly technologies that meet EU requirements. Additionally, participants have the chance to receive a grant of up to 30% of the successfully implemented investment project's value, according to the project's requirements.
