EFSE steps up recovery support to Ukrainian MSMEs through dedicated grant-linked financing in local currency

In order to increase lending opportunities for small and medium-sized businesses in the Western region of Ukraine, Bank Lviv attracted EUR 10 million in hryvnia equivalent from the European Fund for Southeast Europe (EFSE). The funds will be directed to the development of projects of Ukrainian entrepreneurs. The partnership agreement was signed on June 11, 2024 in Berlin during the Ukrainian Recovery Conference in Berlin.

Bank Lviv once again proves its readiness to support SME`s in wartime, providing them with affordable long-term financing. Funds received from EFSE will allow enterprises to scale, strengthen international cooperation, increase production, and create additional jobs. Under the terms of cooperation, it is important that the business that will attract a loan will receive a grant in the amount of 10% of the loan amount.

“SME’s are the backbone of our economy, and their stability and growth are crucial for Ukraine’s economic progress. With EFSE’s support, we can offer better loan conditions, significantly contributing to the resilience and competitiveness of Ukrainian enterprises both locally and globally” – added Ashot Abrahamyan, Banks Lviv Chairperson of the Management Board.

Andrea Hagmann, EFSE Chairperson, added “The cooperation between EFSE and Bank Lviv is a significant step towards economic recovery in Ukraine, aligning with broader efforts to expedite the country’s recovery and economic integration.”

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About EFSE

​An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region. ​EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors. Finance in Motion GmbH, Germany, serves as EFSE’s advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager. For more information on the European Fund for Southeast Europe, please visit: www.efse.lu

About Bank Lviv

Bank Lviv is the Bank that focuses on serving SME`s in the western regions of Ukraine. According to the Financial Statements as for end of 2023, the Bank’s loan portfolio was 170 million Euros. The Bank has many years of experience in cooperation with agribusiness and companies that care about the environment.