Bank Lviv (Lviv) has signed agreements with the European Investment Bank (EIB), the European Investment Fund (EIF), the Belgian Development Organization for Developing Countries (BIO) and the Bank of the Council of Europe (CoE) totaling EUR 103 million, which will allow it to expand financing to the private sector through credit lines, guarantees and support for micro-entrepreneurs.
“Within the framework of international partnerships, Lviv Bank has signed four strategic agreements with international financial institutions – for a total of more than EUR100 million to support Ukrainian private companies, SMEs and entrepreneurs!” Volodymyr Kuzio, deputy chairman of the bank’s board, said on Facebook on Tuesday.
He noted that Lviv Bank has attracted EUR 60 million from the EIB in the form of a multi-currency credit line, including local currency financing, to improve access to finance for the private sector.
Another EUR 35 million was provided by the EIF in the form of portfolio guarantees, which will reduce collateral requirements for Ukrainian private sector clients to 70% and at the same time strengthen the capital of Bank Lviv.
In addition, the bank will receive EUR 5 million from the Belgian development organization BIO, the first transaction in the institution’s history in Ukraine.
Another EUR 3 million is being provided by the Council of Europe Development Bank to support micro-entrepreneurs across the country.
According to the National Bank of Ukraine, as of April, Lviv Bank ranked 23rd in terms of total assets among 60 operating banks with UAH 14.8 billion, or 0.4% of the banking sector.
The European Investment Fund (EIF), a member of the European Investment Bank (EIB) group, and Finland’s official export credit agency, Finnvera, have signed a EUR 30 million guarantee agreement to support exports of Finnish small and medium-sized enterprises (SMEs) to Ukraine.
According to the European Commission, the pilot project was signed under the InvestEU program and is part of the EU’s broader efforts to strengthen economic ties with Ukraine and support its recovery and accession process.
“The agreement allows Finnvera to issue export credit facilities to Finnish companies trading with Ukraine under the EIF guarantee under the InvestEU export credit guarantee facility. This is one of 13 agreements being prepared with national export credit agencies in EU member states under this mechanism,” the European Commission said in a statement on its website on Tuesday.
It is noted that the pilot project will support Finnish SMEs and medium-sized companies with fewer than 500 employees to help manage risks and access new opportunities in Ukraine, even in times of war. The EIF guarantee complements the national loss-sharing mechanism introduced by the Finnish Ministry of Economic Affairs and Employment, which allows Finnvera to issue export guarantees to Ukraine under exceptional conditions.
“I welcome this agreement… Thanks to the support of the EU budget and the EIF, the export program helps EU companies to continue trading and strengthen our economic ties with Ukraine. In this way, it contributes to the further integration of the EU and Ukrainian economies, as well as to Ukraine’s recovery. I hope that more deals will be concluded through this program in the near future, benefiting both EU businesses and the Ukrainian economy,” commented Valdis Dombrovskis, Commissioner for Economic and Productivity, Implementation and Simplification.
EIF Executive Director Marjut Falkstedt noted that the fund had made significant efforts to launch this program quickly, recognizing its potential to strengthen EU SMEs and support Ukraine’s economic stability at a critical time. She noted that the introduction of the guarantee is an important step, and similar agreements in other EU countries will further extend its impact.
In addition, according to Finnvera’s CEO, it is extremely important from the export credit agency’s point of view that it is possible to support Ukraine’s recovery efforts while creating opportunities for Finnish companies.
