The Ukrainian Enterprise Development Fund and the state bank of the German Government Credit Institution for Reconstruction (KfW) have signed an agreement to provide EUR 7.4 million in credit and grant financing for small and medium-sized businesses for 30 years.
The parties signed the Agreement on the provision of a loan and a grant for the implementation of the project “Refinancing of energy-efficient investments of small and medium-sized enterprises of Ukraine through the financial sector”, financed by the Government of the Federal Republic of Germany.
Within the project EUR 7 million is allocated to loans and EUR 0.4 million is aimed at financing grants.
Raised loan funds will be directed by the Entrepreneurship Development Fund through partner banks to finance SMEs in the national currency. That will contribute to maintaining the liquidity of financial institutions and allow SMEs to invest in energy-efficient initiatives in the conditions of martial law.
In addition, in May KfW signed a loan agreement with the Ministry of Finance of Ukraine totaliing EUR 150 million as part of the Program of Emergency Economic Assistance to Ukraine, aimed at providing liquidity to the Ukrainian government so that it can support its public social spending, pensions and health care expenditures and education, including salaries for school and hospital staff.