Bank Lviv and the Development Finance Corporation (DFC) have signed a 10-year portfolio guarantee agreement for micro, small, and medium-sized businesses
- #About the Bank
On 25 August, 2022, the U.S. International Development Finance Corporation (DFC) and Bank Lviv signed a 10-year Loan Portfolio Guaranty (LPG) for the Bank on loans for micro, small, and medium-sized enterprises (MSMEs). The DFC guaranty, which is being issued in collaboration with the U.S. Agency for International Development (USAID), will support nearly $19 million in new lending by the Bank.
«In the context of the warfare in Ukraine, our partnership with the DFC and the USAID is important both for us and the Ukrainian economy, as the risk-sharing facility will allow us to confidently continue lending to MSME customers in Western Ukraine in accordance with our credit policy. We are also discussing possible further cooperation with the DFC,» said Ashot Abrahamyan, Chairperson of the Management Board, Bank Lviv.
The new LPG Agreement covers lending to MSMEs in all sectors of the economy and enables the bank to cover 80% of the credit risk for loans disbursed under LPG conditions. Thus, the bank will offer loans to clients without restrictions caused by the lack of collateral or legal issues related to that. These conditions will certainly have a positive impact on the Ukrainian economy under the high unpredictability of the future caused by the war.
The U.S. International Development Finance Corporation (DFC) is a US development finance institution of the US Government. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today.
As the leading development agency of the U.S. Government, the USAID supports Ukraine to secure an independent, democratic, and prosperous future. The USAID has worked in Ukraine since 1992, supporting the country’s transformation into a democracy pursuing integration with Western political, economic, and security institutions.
About Bank Lviv
Bank Lviv is a European bank that has provided reliable banking services to businesses and individuals in western Ukraine since 1990. The Bank Lviv team builds a new banking culture based on transparent relations and common goals. The mission of Bank Lviv is to create opportunities, provide support, and exchange experience for all who is eager to develop. Bank Lviv is a solid footing, a bank for free people.
