The European Commission and European Investment Bank (EIB) Group moved to support the private sector in Ukraine by seeking to unlock more than 1 billion euros in lending to small and medium-sized enterprises (SMEs).

At the Ukraine Recovery Conference in Berlin, the Commission and EIB Group signed agreements for two guarantee facilities totalling 190 million euros. They are designed to enhance access to finance for SMEs in Ukraine by sharing risk with Ukrainian local banks and financial intermediaries.

These programmes are expected to unlock over 1 billion in lending to businesses in Ukraine, enabling them to secure credit on favourable terms and increase their resilience.

This financial package will help Ukrainian SMEs cope with the impact of Russia’s invasion as well as reorient them towards the EU economy. It will also support start-ups, women in business, youth and regions  as well as firms owned by or employing internally displaced people (IDPs) and veterans.