The European Bank for Reconstruction and Development (EBRD) will provide Lviv Bank with an unsecured loan in UAH for up to EUR 40 million and guarantees for EUR 31.5 million to cover the credit risk of new loans to the Ukrainian bank for a total amount equivalent to EUR 45 million.
According to the EBRD website, the Board of Directors approved the relevant projects at a meeting on October 22 this year.
According to the published materials, the loan will be provided in four equal tranches of EUR 10 million each, of which one tranche is currently reserved. It will consist of two components: at least 75% under the EBRD Resilience and Livelihoods Program and up to 25% under the EU4Business-EBRD Credit Line with incentives to finance long-term capital investments of MSMEs.
Funding under the Resilience and Livelihoods program will be used to provide loans to private MSMEs in Ukraine, including those that have relocated their businesses to the western part of Ukraine due to the ongoing war.
As for the guarantee project, unlike most similar projects with larger banks, it will cover 70% of the risk, not 50% as usual. It is noted that the mechanism will include two sublimits with a covered portfolio: EUR 36 million under the Resilience and Livelihoods Guarantee product and EUR 9 million under the EU4Business-EBRD Incentive Credit Line.
The EBRD indicates that Bank Lviv is a regional bank focused on MSMEs operating in western Ukraine with total assets of EUR333 million (0.5% of the market, 23rd out of 60 banks) and a loan portfolio (mainly to MSMEs) of approximately EUR212 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.
