On 29 December 2020, The European Fund for Southeast Europe (EFSE) provided a senior loan in Ukrainian hryvnia equivalent to €5 million to partner Agroprosperis Bank for on-lending to agricultural micro and small enterprises (MSEs) in Ukraine.
Through the investment, the partners aim to facilitate farmers’ ability to access much-needed financing during the COVID-19 crisis to sustain their businesses using local currency. It will also safeguard them from the exchange rate risks inherent to financing in a foreign currency.
Agroprosperis Bank is a part of the AP Group, one of the largest agricultural business groups in Ukraine. “Agriculture is a significant pillar of the Ukrainian economy, and the bank’s engagement with this sector makes it a truly strategic partner for EFSE in channelling responsible finance to the region,” said Klaus Müller EFSE Board Chairperson.
EFSE is an impact investment fund established in 2005, which invests in micro and small enterprises in Southeast Europe and the Eastern Neighbourhood Region and improves living conditions for private households. Its ability to provide funding to its partners in local currency was boosted by contributions from the European Commission as part of its EU4Business initiative, as well as from the German Federal Ministry for Economic Cooperation and Development (BMZ).
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