EFSE and Ukreximbank join forces to boost MSME financing in Ukraine with EU support

The European Fund for Southeast Europe (EFSE), through its Ukraine Sub-Fund (USF), announced on 21 April the expansion of its support to Ukraine by signing a UAH-equivalent €20 million loan agreement with Ukreximbank, building on the recent €55 million contribution to EFSE from the EU.

This partnership aims to strengthen the resilience and recovery of Ukrainian micro, small, and medium-sized enterprises (MSMEs) in wartime conditions by improving access to finance and providing grant support, backed by the European Union (EU)’s Ukraine Facility.

The loan facility is complemented by dedicated financing-linked MSME EU-funded grants, aimed at supporting business recovery, resilience and competitiveness. The combined package is expected to enable more than 400 sub-loans and support over 7,000 jobs across Ukraine.

Jasminka Begert, Portfolio Manager of EFSE, said: “Ukraine’s recovery is built by its entrepreneurs – yet long-term local currency finance remains in short supply. This investment reflects EFSE USF’s long-term commitment to keeping businesses operating and resilient, combining dedicated financing with tailored grants and technical support to help them adapt, safeguard jobs and stay economically active.”

The European Fund for Southeast Europe (EFSE) is an impact investment fund to drive economic development and prosperity in Southeast Europe and the Caucasus. Through its two sub-funds – the Regional Sub-Fund (RSF) and the Ukraine Sub-Fund (USF) – EFSE provides tailored financial solutions to foster entrepreneurship, strengthen financial inclusion, and support local economies. EFSE was initiated in 2005 by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. 

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