The European Union and the EBRD have signed agreements worth 363 million euros, which will enable the mobilization of up to 2.9 billion euros in loans for Ukrainian startups, small and medium-sized businesses.
The European Commission has signed two guarantee agreements with the European Bank for Reconstruction and Development for a total amount of 363 million euros to support Ukrainian businesses. Thanks to these guarantees, it is planned to attract up to 2.9 billion euros in new loans for startups, small and medium-sized businesses, as well as mid-cap companies.
As explained by European Commissioner for Enlargement Marta Cos during the Ukraine-EU Business Summit in Brussels, the program provides for a new mechanism to protect businesses from war risks. In particular, EU guarantees will cover losses to companies caused by war-related destruction.
The program will pay special attention to enterprises that have suffered losses due to hostilities, as well as vulnerable categories of small and medium-sized businesses. The funding is expected to help rebuild destroyed assets and support veterans and internally displaced persons in starting their own businesses.
Finance is also provided for companies investing in energy projects to prepare for the next heating season. The initiative will also be strengthened by grants and technical assistance worth over €320 million.
