UKRGASBANK is launching a new program to finance MSMEs with grant support from the German Government

UKRGASBANK and Deutsche Sparkassenstiftung für internationale Kooperation (DSIK) announced a joint project 'Access to Finance and Support for MSMEs in Ukraine II.' The memorandum of cooperation between UKRGASBANK and the German partners was signed on Friday, October 27.

MSMEs engaged primarily in the processing industry, economically important production, and other business sectors can obtain financing and grants under the project. Priority will be given to relocated enterprises and businesses in communities hosting them, as well as enterprises from the de-occupied territories.

MSMEs that received loans from UKRGASBANK will be eligible for a grant of up to 30% of the project cost.

'The support provided by the German Government to Ukraine and Ukrainian entrepreneurs is highly valuable. For UKRGASBANK, it is the second project implemented with German partners. The new grant program allows us to enhance support for businesses affected by the war, which continue to recover and grow. The grant component of the program will significantly facilitate entrepreneurs' access to financing. Within the framework of another program ‘Add Energy to Your Business’ implemented with the support of the German Government, the Bank finances SME energy efficiency,' stated Rodion Morozov, Acting Chairman of the Management Board of UKRGASBANK.

It is important that financing under the new program can be combined with the state program 'Affordable Loans 5-7-9%', which provides for even more affordable loan conditions for businesses during wartime. UKRGASBANK has considerable experience in financing investment projects and is among the top three leaders in this field.

'We are pleased to welcome UKRGASBANK as a partner in the program. Our mission is to develop the financial sector and the economy, particularly small and medium-sized businesses. Today, MSMEs account for 80% of the economies of European countries, and they have the same significance in Ukraine. Moreover, in war-affected Ukraine, this support has a completely different dimension and meaning – here, assistance to businesses and the financial sector saves lives, preserves jobs, and helps the entire system function. This project is crucial for us, and we are glad to develop it with UKRGASBANK,' said Michael Beck, Project Lead at Deutsche Sparkassenstiftung für Internationale Kooperation in Europe, Central Asia, the Middle East, and North Africa.

The project 'Access to Finance and Support for MSMEs in Ukraine II' is implemented under the international cooperation program ReACT4UA (Resilience/Recovery — Accession — Competitiveness — Trade), funded by the German Government and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with Deutsche Sparkassenstiftung für internationale Kooperation (DSIK), the Business Development Fund (BDF), and the partner financial institutions."

27.10.2023