PrivatBank and the European Investment Fund (EIF), which is part of the EIB Group, have signed a portfolio guarantee agreement under the Ukraine Partial Portfolio Guarantee Facility programme. The new mechanism will enable Ukrainian businesses to access nearly EUR 357 million in financing and will become one of the largest business support instruments introduced with the backing of the European Union during the war.
As the EIF will cover up to 70% of the risk on each eligible loan, PrivatBank will be able to significantly expand lending to companies that typically face limited access to financing due to elevated wartime risks, such as businesses located in riskier zones. At least 80% of the financing will be directed to micro, small and medium-sized enterprises (MSMEs).
"The agreement with the European Investment Fund is strategically important for Ukrainian businesses. It allows us to convert European guarantees into real financing for entrepreneurs investing in manufacturing, energy, agriculture, logistics and other sectors that drive Ukraine’s economy. We expect this mechanism to become a catalyst for increased investment activity across the country," said Yevhen Zaihraiev, Member of the Management Board of PrivatBank responsible for Corporate Business and SME Banking.
Thanks to the EIF support, Ukrainian entrepreneurs and SMEs will be able to access financing on substantially more favourable terms than those available under standard market programmes. In particular, collateral requirements for loans, bank guarantees and factoring products will be significantly reduced, while certain online lending products will not require collateral at all.
Dedicated quotas are designed for veteran-owned businesses, companies established by internally displaced persons, women and young entrepreneurs. Priority will also be given to projects in energy, agricultural processing, logistics, digitalisation and export development. The agreement is a part of the Ukraine Investment Framework, the investment pillar of the\ EUR 50 billion Ukraine Facility launched by the European Union to support Ukraine’s economic resilience and recovery.
“This agreement reflects our continued support for the people of Ukraine and the EU’s commitment to the country’s economic recovery. Ukrainian businesses deserve our respect and support for their entrepreneurial spirit and resilience. We stand firmly with you,” said Marjut Falkstedt, Chief Executive at the European Investment Fund.
About the European Investment Fund (EIF)
The European Investment Fund is part of the European Investment Bank (EIB) Group. Its core mission is to support micro, small and medium-sized enterprises (SMEs) in Europe and partner countries by improving access to finance through a broad range of guarantee and equity instruments.
