Ukraine’s Finance Minister Sergii Marchenko has signed a EUR50 million grant agreement with the German state development bank KfW to compensate for the interest rate costs for small and medium-sized businesses under the state program “Affordable Loans 5-7-9%,” the ministry’s press service said on Thursday.
“The funds will be used to refinance the costs of the Affordable Loans 5-7-9% program, which will allow small and medium-sized businesses to continue to have access to preferential lending,” Marchenko said and expressed gratitude to the German government for its cooperation and systemic support of Ukraine.
He emphasized that the allocated EUR 50 million will make a significant contribution to the improvement of existing business financial support programs.
The Minister also noted that the Entrepreneurship Development Fund (EDF) is a key institution of affordable financing for Ukrainian business aimed at restoring and developing entrepreneurship under martial law.
“The German government continues to support the Ukrainian side and facilitates further grants,” said Ulrike Hopp-Nishanka, Head of the Headquarters for Ukraine at the Federal Ministry for Economic Development and Cooperation (BMZ).
She reminded that last year KfW provided EUR 150 million for the 5-7-9 program.
“These funds are an important component of German-Ukrainian development cooperation, the total amount of which in 2023 alone was more than EUR 600 million,” Hopp-Nishanka said.
