03 / 08 / 2020
JSC Ukreximbank and the EIB are expanding financing for small and medium-sized enterprises (SMEs)
Ukreximbank has raised another EUR 182 million tranche of a loan under a joint program with the European Investment Bank to support a Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU. The goal of the joint program with the EIB is to develop private business in Ukraine, expand access of enterprises to medium and long-term financing, strengthen the position of Ukrainian enterprises in international trade, energy efficiency and renewable energy, and environmental protection.
This loan program is a continuation of the successful cooperation with the EIB started about a decade ago. It keeps creating new business opportunities for entrepreneurs within the free trade area with the European Union.
As for now, Ukreximbank has financed about 30 projects of Ukrainian enterprises from the previous tranche. These included purchasing equipment and machinery within investment projects, as well as replenishing working capital by providing the necessary raw materials for technological processes. All projects passed the examination of Ukreximbank on compliance with the environmental and social criteria of the Program, as well as the EIB procurement regulations.
“Implementation of our joint program with Ukreximbank to support a Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU helps to strengthen the competitiveness of Ukrainian enterprises in international trade. It also supports integration of Ukraine's economy into the EU internal market. Small and medium-sized enterprises are the backbone of the economy both within the EU and in Ukraine and account for a significant portion of the respective GDP and employment. Their support is a priority objective of the EIB, the bank of the European Union,” said Jean-Erik de Zagon, Head of the EIB Representation in Ukraine.
“Ukreximbank understands clearly the use of the new tranche and actively attracts companies to loan resources under this program, which are characterized by a low interest rate. Thanks to our permanent partnership with the European Investment Bank, Ukreximbank will support SMEs through the long-term lending for investment needs, as well as medium-term working capital financing. This is extremely valuable in the face of economic hardship caused by the COVID-19 pandemic,” noted Ievgen Metsger, Chairman of the Management Board of Ukreximbank.
Ukreximbank offers companies to take advantage of attractive financing conditions for investment projects and current needs within EIB loan in support of EU-Ukraine Deep and Comprehensive Free Trade Area.
The European Investment Bank (EIB) is the European Union's bank. It is the long-term lending institution of the EU and is the only bank owned by and representing the interests of the European Union Member States. It makes long-term finance available for sound investments in order to contribute towards EU policy goals. The EIB works closely with other EU institutions to implement EU policy.
As the largest multilateral borrower and lender by volume, the EIB provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of EIB activity is focused on Europe but it also supports the EU's external and development policies.
The EIB finances projects in Ukraine on the basis of the EU External Lending Mandate. This provides the EIB with a guarantee covered by the EU budget for projects of significant interest to the EU and its Eastern Neighbours in the areas of social and economic infrastructure, local private sector development and climate action.