Bank «Lviv» has attracted the support of the European Bank for Reconstruction and Development

To increase its lending capacity to small and medium-sized businesses in the Western region, Bank «Lviv» has secured a loan from the EBRD in local currency for the equivalent of EUR 15 million. With these funds, the bank will be able to finance even more businesses that need investment for development.

Bank «Lviv» will also receive a EUR 7,5 million guarantee from the EBRD to cover credit risks, which will have a positive impact on the availability of loans – lower interest rates and longer maturities. Thus, companies operating in critical industries and currently struggling with the negative effects of the war will be able to access financing.

Since the start of Russia’s full-scale invasion of Ukraine in February 2022, more than five and a half million Ukrainians have moved to the western part of the country from other regions. Some of them relocated their businesses and are now actively looking for financing and reliable banking partners.

«Today, Ukrainian entrepreneurs are working in difficult conditions, but they are not going to stop because they realize that they are the strength of the economy. That is why we, as a responsible bank, are always looking for the best solutions for profitable and affordable business lending. The new agreement with the European Bank for Reconstruction and Development is just a confirmation of our common aspirations. Together we are creating a sustainable business and developing the country’s economy despite all the challenge», commented Ashot Abrahamyan, Chairman of the Board of Bank «Lviv».

The bank will receive the loan from the EBRD in two tranches of EUR 10 million and EUR 5 million. These funds will strengthen the bank’s funding base and ensure continuous access to Bank «Lviv» loans for businesses. The cost of financing the loan will be reduced by subsidizing the interest rate in national currency under the European Union’s «EU4Business» initiative in Ukraine. 

The  EUR 7,5 million guarantee will be provided in two equal tranches, each covering 50% of the credit risk on new loans to Bank «Lviv» with a total value of up to  EUR 30 million.  In addition, a portion of the total risk guarantee portfolio will be used to support long-term investments of micro, small and medium-sized enterprises irom the EBRD to covern green technologies that meet EU requirements. 

The European Bank for Reconstruction and Development is the largest institutional investor in Ukraine and has committed to invest EUR 3 billion in 2022 and 2023.

The EBRD strongly condemned the Russian invasion and pledged to stand with Ukraine. In early April 2022, the EBRD Board of Governors voted to suspend indefinitely the access of Russia and Belarus to EBRD financing and technical assistance. The Bank also closed its offices in these two countries. In addition to a resilience package for Ukraine and neighboring countries affected by the war, the EBRD has pledged to help finance Ukraine’s recovery when conditions are favorable.