EBRD launches Enterprise Security Enhancement with PrivatBank and Raiffeisen Bank Ukraine

The European Bank for Reconstruction and Development (EBRD) has partnered with PrivatBank and Raiffeisen Bank Ukraine (RBU) on a new support mechanism for Ukrainian businesses and households affected by Russia’s ongoing war on Ukraine.

The Bank and the two Ukrainian lenders are piloting an Enterprise Security Enhancement (ESE) feature as part of their portfolio risk sharing (PRS) facilities, the EBRD announced on 8 May.

The donor-funded feature will enable PrivatBank and RBU to grant partial debt relief to Ukrainian borrowers who have suffered war-related damage. The instrument is the first of its kind piloted by the EBRD and is designed to address a critical wartime gap in business finance.

ESE introduces a structured mechanism that allows EBRD partner banks to grant partial debt relief to eligible sub-borrowers, if assets financed by sub loans that fall under the EBRD’s PRS facility suffer direct, verified war damage. The EBRD, thanks to donor support, will compensate the partner banks for the resulting credit loss, allowing Ukrainian businesses to continue operating and reinvesting rather than carrying the full residual liability of destroyed assets.

The pilot ESE allocations are funded by EBRD grant resources. As the mechanism rolls out beyond the pilot phase to additional Ukrainian partner financial institutions and PRS facilities, future allocations are expected to be funded by external donors, including the European Commission under the Ukraine Investment Framework (UIF).

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Press release