The agreement signed by Kredobank in Ukraine, belonging to the PKO Bank Polski capital group, with the European Bank for Reconstruction and Development (EBRD), will enable financing for Ukrainian entrepreneurs in the total amount of EUR 125 million. The cooperation concerns three solutions. The first one is loan guarantees, which will allow to generate loans up to EUR 100 million. The second solution is investment incentives – some entrepreneurs will be able to receive subsidy support under the Small and Medium Business Competitiveness Program from the EBRD (“EaP SMEC Sub-loans”). The third solution is the opening by the EBRD of a limit of EUR 25 million for financing investments supporting foreign trade.
According to the risk-sharing agreement signed in London, the EBRD will hedge 50% of the credit risk in respect of new financing up to EUR 100 million, provided by Kredobank.
“Ukraine’s needs today are enormous. To survive and continue to function, the Ukrainian economy needs constant access to external financing. The same applies to businesses operating in the Ukrainian market. At this stage, the help of international institutions such as the European Bank for Reconstruction and Development (EBRD) is invaluable, as they have the appropriate mandate and funds needed to implement assistance activities. The more so that according to our calculations, the World Bank and the government of Ukraine, by 2032 Ukraine may need financing of up to USD 750 billion (approx. EUR 685 billion). That is why this and each subsequent agreement on financial support for the Ukrainian economy is extremely important,” – says Andrzej Kopyrski, Vice President of the Management Board at PKO Bank Polski.
The agreement signed by Kredobank and the EBRD will benefit entrepreneurs from strategic sectors during the war with Russia. The agreement will increase access to finance for Ukrainian businesses operating in industries such as the agricultural sector and agricultural services, food processing, transport and logistics, retail, and pharmacy.
“Ukrainian cities are exposed to significant damage and heavy losses every day due to Russian missile attacks. This spring, almost a quarter of the land available for sowing has not been sown, and it will take at least ten years to clear land that has been occupied or is near the front line. Ukrainian business needs loans to survive. Kredobank, which is part of the PKO Bank Polski capital group, helps Ukrainian entrepreneurs to continue their work during the war. Thanks to the risk-sharing agreement with the EBRD, new opportunities are opening up to increase the value of lending to Ukrainian businesses and support critical sectors of the Ukrainian economy,” – says Jacek Szugajew, President of the Management Board at KredoBank.
In addition, some entrepreneurs who will benefit from financing with the EBRD guarantees will be able to receive technical assistance and investment incentives under the Small and Medium Business Competitiveness Program from the EBRD (“EaP SMEC Sub-loans”). Eligible borrowers will receive subsidy support upon completion of their investment projects. Investments must meet the program criteria and include, but are not limited to financing sustainable development and supporting green investments.
The EBRD has also opened a limit of up to EUR 25 million available from the Trade Facilitation Program (TFP). Thanks to participation in the program, Kredobank will strengthen support for Ukrainian exporters and importers. It is an important financial tool for Kredobank, which will help meet the increased demand from Ukrainian entrepreneurs for foreign trade support tools.
PKO Bank Polski will continue to support customers by developing Kredobank’s operations. Ukrainian Kredobank has a unique position, especially since it has been on the list of system banks of the National Bank of Ukraine (NBU) since March 2022. At the moment, there are 67 Kredobank branches serving customers.
Source: The press release by PKO Bank Polski dated July 26, 2023
