European Union partners with IFC and Credit Agricole to empower Ukrainian SMEs

On 15 December, the European Union, the International Financial Corporation (IFC, part of World Bank) and Credit Agricole Ukraine signed in Paris a new €40 million equivalent risk-sharing facility to boost access to finance for Ukraine’s small and medium enterprises (SMEs).

The risk-sharing facility, for which the IFC will contribute a local currency equivalent of €20 million with EU support, will provide financial support to smaller businesses, including agricultural and rural SMEs. The bank currently serves over 400,000 clients across Ukraine.

“As the backbone of the Ukrainian economy, small and medium-sized enterprises play a key role in recovery, reconstruction and modernisation efforts,” said Katarína Mathernová, Ambassador of the European Union to Ukraine. “With this new risk-sharing facility, the EU is stepping up its support to address the needs of Ukraine’s businesses and boost investment in the country.”

According to the EU Delegation to Ukraine, the country’s SMEs are increasingly vulnerable due to the highly risky and uncertain business environment. In 2021, they comprised 99.97 per cent of all businesses in Ukraine, accounting for approximately 60 per cent of GDP and employing over 7 million people. Ukraine’s SMEs face significant challenges, operating at an average pre-invasion capacity of 44 per cent.

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Press release