EIB Group Backs €43 Million SME Lending Boost for Ukraine via ProCredit Bank

The guarantee will allow ProCredit Bank to expand its lending capacity and offer more favourable financing conditions, including longer maturities and improved affordability.

The European Investment Bank (EIB) and the European Investment Fund (EIF), jointly forming the EIB Group, have signed a new EU-backed guarantee that will enable ProCredit Bank Ukraine to mobilise more than €43 million in additional financing for small and medium-sized enterprises (SMEs) across the country. The initiative is designed to strengthen the resilience of Ukrainian businesses as they continue operating under the severe economic pressures caused by Russia’s ongoing war against Ukraine.

The guarantee will allow ProCredit Bank to expand its lending capacity and offer more favourable financing conditions, including longer maturities and improved affordability. This is particularly critical for SMEs facing disrupted supply chains, reduced revenues and heightened uncertainty, yet striving to maintain operations, protect employment and plan for long-term recovery.

More than 220 Ukrainian companies are expected to benefit from the operation. The financing will prioritise key sectors essential to economic stability and recovery, including agriculture, manufacturing and trade. Special attention will also be given to women-led and youth-led enterprises, as well as businesses that have been directly affected by the war, ensuring that support reaches those most in need.

The guarantee is supported by the European Union, channelled through the EU4Business Guarantee Facility under the Ukraine Facility. This framework aims to safeguard Ukraine’s private sector during wartime while laying the foundations for post-war reconstruction. By sharing risk with local financial institutions, the EU and the EIB Group are helping banks continue lending despite elevated market risks.

Commenting on the agreement, EIB Group Vice-President Teresa Czerwińska, who oversees operations in Ukraine, highlighted the determination shown by Ukrainian entrepreneurs. She emphasised that the EIB Group remains committed to helping SMEs access vital financing to sustain operations, preserve jobs and prepare for future growth, even in the most challenging circumstances.

From the European Union’s perspective, Stefan Schleuning, Head of Cooperation at the EU Delegation to Ukraine, underlined the central role of SMEs in the country’s economy and recovery. He noted that by improving access to affordable finance through EU-backed guarantees, the Union is reinforcing Ukraine’s economic resilience and supporting businesses that continue to invest and operate despite the war.

Oleksandr Povshednyi, CEO of the Management Board of ProCredit Bank Ukraine, described the guarantee as both timely and crucial. He stressed that the partnership with the EIB Group and the EU enables the bank to deliver faster and more affordable financing, helping Ukrainian SMEs stay afloat, safeguard jobs and invest in their future. He reaffirmed ProCredit Bank’s commitment to standing by its clients during this critical period.

Overall, the operation demonstrates the EIB Group’s and the EU’s long-term commitment to Ukraine, reinforcing financial stability, supporting entrepreneurship and ensuring that the country’s private sector remains a driving force for resilience and eventual recovery.