Ukraine will receive an additional 2 billion euros from the EBRD and the EU for business development
The European Union and the European Bank for Reconstruction and Development expand a programme to support micro, small and medium-sized enterprises, as well as large companies in Ukraine.
The European Union will provide an additional €200 million in guarantees, €105 million in grants and €10 million in technical assistance through the Investment Framework Programme for Ukraine.
The new package is expected to open up access to €2 billion in loans through the EBRD’s partner financial institutions in Ukraine. The support is expected to reach at least 3,000 micro, small and medium-sized enterprises and help preserve around 180,000 jobs.
At least half of the investment incentive grants will be directed to priority enterprises. This includes businesses that have been devastated, operate in war-torn areas, or are run by veterans.
Support is also provided for companies that facilitate the reintegration of internally displaced persons and people with disabilities, as well as microbusinesses, startups, small farmers, and enterprises run by women and youth.
A separate area of the program will concern the restoration of the Ukrainian insurance market, in particular the development of war risk insurance solutions. The pilot project will provide insurance subsidies for micro, small, and medium-sized enterprises.
Part of the support will be a mechanism for improving the safety of enterprises, which is being tested in Ukraine. It will allow banks to partially write off debts to borrowers whose assets were damaged as a result of the war.
