The European Fund for Southeast Europe (EFSE) with its new partner in Ukraine, Bank Lviv, will expand access to responsible financing for agricultural micro and small enterprises (MSEs) across the country, with the support of the EU4Business initiative, funded by the EU.
A senior loan from the Fund in Ukrainian hryvnia equivalent to €5 million will be on-lent by the bank in the form of tailored business loans that meet the particular needs of Ukrainian agricultural producers and farmers.
The local currency loans are intended to equip farmers with crucial resources to combat the challenges of the COVID-19 crisis, while safeguarding them from potential ups and downs in the exchange rate. Bank Lviv is a dedicated player in SME finance with a special focus on serving agricultural businesses in Western Ukraine, where EFSE wants to expand its activities to raise the financial inclusion of the region. The loan from EFSE will support Bank Lviv in offering rural SMEs longer-term financing to invest in, for example, the purchase of agricultural machinery and equipment.
EFSE’s ability to provide funding to its partners in local currency has been 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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