The European Bank for Reconstruction and Development (EBRD) may provide Bank Lviv with an unsecured loan in hryvnia for up to EUR 40 million and guarantees for EUR 31.5 million to cover the credit risk on new loans to the Ukrainian bank for a total amount equivalent to EUR 45 million.
According to the EBRD website, its Board of Directors plans to consider the relevant projects at its meeting on October 22 this year.
According to published materials, the loan is planned to be provided in four equal tranches of EUR 10 million each. It will consist of two components: at least 75% under the EBRD’s Resilience and Livelihoods Program and up to 25% under the EU4Business-EBRD Credit Line with incentives to finance long-term capital investments by MSMEs.
As for the guarantee project, unlike most similar projects with larger banks, it covers 70% of the risk, rather than the usual 50%. It is noted that the mechanism will include two sub-limits with a covered portfolio: EUR 36 million under the Sustainability and Livelihoods Guarantee product and EUR 9 million under the EU4Business-EBRD credit line with incentives.
The EBRD notes that Bank Lviv is a regional bank focused on MSMEs operating in western Ukraine, with total assets of EUR 333 million (0.5% of the market, ranked 23rd among 60 banks) and a loan portfolio (mainly SMEs) of approximately EUR 212 million as of the end of the second quarter of 2025 (1.2% of the market). Bank Lviv has its head office in Lviv and 20 branches.
