UKRGASBANK joined FinancEast finance programme to support SMEs in Ukraine’s east

UKRGASBANK and the German-Ukrainian Fund signed subsidy agreement on the implementation of FinancEast programme as part of the EU’s EU4Business initiative. This programme is aimed at restarting financing of SMEs in government-controlled areas of Donetsk and Luhansk regions.

The FinancEast programme is funded by the European Union, which provided EUR 9.5 million of grant funds through the German Development Bank KfW. It will be implemented by the German-Ukrainian Fund.

“Through this grant the European Union hopes relaunching sustainable lending and leasing operations in a region where banks were almost not operational anymore since 2014, supporting sustainable economic and social recovery and thereby contributing to peace and reconciliation in Eastern Ukraine" said Frederik Coene, First Counsellor, Head of Operations "Local and Human Development”, Delegation of the European Union to Ukraine.

“Today we start implementing the active phase of the FinancEast program, which will give Donbas entrepreneurs access to a variety of financial instruments, including lending. I am sure, this will improve the financial health of their companies, increase their ability to grow, develop and delight their customers with high-quality goods and services”, said Yuriy Heletiy, Deputy Minister of Finance of Ukraine.

“The National Bank supports programs helping to restart lending to the Ukrainian economy and businesses in the eastern regions. We are currently witnessing a surge in lending, especially in the small and medium enterprise segment. Demand for loans from SMEs is increasing every year, while the quality of their debt servicing is significantly higher than in other business segments. We believe that this segment will be a driving force in restarting lending and economic development of the country”, said Kateryna Rozhkova, First Deputy Governor of the National Bank.

“UKRGASBANK is the leader in SME-financing: this year alone, the loan portfolio for SME clients has doubled and today amounts to UAH 5.3 billion. UKRGASBANK has been successfully cooperating with the German-Ukrainian Fund to support SMEs since 2012 and is the most active partner financial institution under the GUF programmes. During this time, we have granted loans to micro, small and medium-sized enterprises in the amount of over UAH 760 million”, said Kyrylo Shevchenko, Chairman of the Management Board.

Grant resources will be channeled to SMEs as a subsidy of up to 50% of the investment costs. Investment projects will be financed through leasing or loans to purchase agricultural machinery, equipment and vehicles, installation, construction or reconstruction of production assets etc. Starting December 20, 2019, entrepreneurs can apply for a leasing or a loan at UKRGASBANK.

For more details about the Programme, please, follow the link.