Bank Lviv has secured new funding to support small and medium-sized businesses in Ukraine

Development and rebuilding of Ukraine’s economy after the war depends heavily on the ability of small and medium-sized enterprises to invest in and develop their businesses. IFU is investing EUR 7 million in Bank Lviv, which provides targeted financing to small and medium-sized companies.

The Russian invasion has had a significant negative impact on Ukraine’s economy and business. Many companies in eastern and southern parts of Ukraine have been forced to close or partially or fully relocate to  the western part of the country, which has been less affected by the war.

The companies need financing to recover and rebuild their businesses. The scarcity of capital holds companies back from investing in facilities and technology that can increase production, employment, and exports, which are crucial for economic development and reconstruction of Ukraine. 

Therefore, IFU invests EUR 7 million in Bank Lviv, which provides targeted financing to small and medium-sized enterprises and serves around 45,000 customers, including 8, 500 business clients in key areas such as manufacturing, trade, and agribusiness. This is not just an investment — it is a subordinated loan that will allow the bank to significantly increase the volume of financing for Ukrainian businesses.

“The €7 million investment from IFU strengthens our ability to support small and medium-sized enterprises — the backbone of Ukraine’s economy. Our goal is to provide access to financing and foster sustainable development, technological innovation, and integration into international trade. This partnership with IFU is a significant step for Bank Lviv, as together we will help Ukrainian businesses grow, create new jobs and contribute to Ukraine‘s economic development”, commented Ashot Abrahamyan, Chairman of the Board of Bank Lviv.

“We are very pleased to be able to invest EUR 7 million in Bank Lviv. It is an important investment that improves the bank’s ability to offer financing to small and medium-sized enterprises, which have a great need for capital and play a significant role in the economic and social reconstruction of the country,” said Olexiy Parkhomchuk, Investment Director, Representative Ukraine at IFU.

A bank with ambitions for a green and equal future

Bank Lviv contributes to both the green transition and gender equality. It is one of a few banks in Ukraine that has green ambitions for the future with an ambition to be able to classify 15% of their financing as green by 2028. At the same time, the bank provides loans to companies based on a policy that everyone, especially women, should have access to decent jobs.

“The bank’s profile and objectives are in line with IFU’s strategy to focus on investments that support the green transition and promote gender equality, which is another good reason to invest in Bank Lviv,” said Olexiy Parkhomchuk.