European Fund for Southeast Europe strengthens cooperation with Ukrainian banks

Last month, the European Fund for Southeast Europe (EFSE) with its Ukraine Sub-Fund (USF) strengthened its strategic partnership with six Ukrainian banks – Oschadbank, ProCredit Bank, Agroprosperis Bank, Ukrgasbank, Piraeus Bank, and Lviv Bank.

Cooperation with Oschadbank, Ukraine’s second largest bank and a systemically important lender to its economy with a demonstrated social mission, aims to strengthen the access to local currency finance for micro, small, and medium enterprises (MSMEs) in Ukraine, particularly those operating in regions heavily affected by the war, and those owned or led by vulnerable social groups, such as women and veterans. The Fund has committed a €20 million long-term local currency loan facility to Oschadbank, along with a dedicated grant programme for MSME borrowers that aims to strengthen the solvency and continuity of local businesses amid elevated risks and uncertainties.

ProCredit Bank Ukraine will receive an additional €10 million long-term local currency loan.

The new funding will enable ProCredit Bank to extend longer-term, local currency loans to MSMEs, helping them adapt to an increasingly complex and unpredictable operating landscape, and invest in sustainable and forward-looking growth. The facility is also complemented by dedicated grants for eligible end-borrowers under the EFSE USF financing-linked grants programme.

With a new €8 million loan in UAH, Agroprosperis Bank, a key player in Ukraine’s agricultural finance sector, will be able to extend much-needed local currency, longer-term financing to agricultural businesses, including the small-scale, resource-constrained enterprises that are commonly underserved by the Banking sector. The accompanying financing-linked MSME grants will additionally secure business continuity and viability and support MSME relocation, adaptation, employment retention, and asset restoration.

Ukrgasbank, a leading Ukrainian financial institution with a strong focus on sustainable and responsible growth, will receive €20 million in a long-term local currency loan facility, complemented by a dedicated grant programme for MSME end-borrowers.

With the signing of a new €10 million loan facility in UAH with the Fund, combined with a financing-linked MSME grant programme, Piraeus Bank will enhance access to long-term local currency financing  for local businesses. The grant component will support MSMEs in maintaining business continuity and viability, enabling relocation and adaptation, preserving employment, and restoring essential assets. 

Bank Lviv, a key player in the financial sector of Western Ukraine, will receive €15 million of additional UAH funding, dedicated to supporting the resilience and competitiveness of MSMEs and contributing to an inclusive recovery. The financing is also complemented by dedicated grants designed to ease access to finance for war-affected MSMEs, including newly established and relocated businesses. 

The new loan agreements were signed at the one-year anniversary event marking the launch of the EFSE USF  – ‘Unlocking Potential: Charting Pathways for Lending Recovery in Ukraine’ – held on 17 June in Chișinău, Moldova.

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. 

Find out more

EFSE hosts the first Ukraine Sub-Fund event on lending recovery in Ukraine

EFSE and Oschadbank enter a strategic partnership to support MSME resilience and recovery in Ukraine

EFSE USF and Bank Lviv strengthen their partnership through a top-up loan of EUR 15 million in UAH to support MSMEs in Ukraine

EFSE USF and Piraeus Bank join forces to launch EUR 10 Million loan facility in UAH to support Ukrainian MSMEs

EFSE extends partnership with ProCredit Bank to support long-term growth of Ukrainian MSMEs

EFSE USF and Agroprosperis Bank strengthen their strategic partnership to support the resilience of Ukrainian agricultural businesses

EFSE partners with Ukrgasbank to provide €20 million in financing to Ukrainian MSMEs