Oschad has received another tranche under EBRD unfunded portfolio risk-sharing facility, which will facilitate access to new loans for business clients

SMEs will also receive EU-funded technical assistance and investment incentives upon completion of their investment projects under EU4Business initiative.

The European Bank for Reconstruction and Development (EBRD) has provided Oschad with the second tranche of the portfolio risk-sharing facility in the amount of EUR 75 million. These funds will significantly reduce collateral requirements for borrowers, making these loans more affordable. A significant share of the risk-shared sub-loans will be used to support vulnerable groups of borrowers: businesses that suffered asset loss and/or destruction, those supporting the reintegration of veterans and war-affected persons, internally displaced persons, persons with disabilities, companies relocated from or operating in war-affected territories of Ukraine, women-led and youth-led companies.

Up to EUR 15 million (in equivalent) of the risk-shared loans under this tranche will support private micro-, small- and medium-sized businesses’ (MSMEs’) long-term investments in EU compliant and green technologies, improving Ukrainian MSMEs’ competitiveness on domestic and foreign markets. Such MSME sub-borrowers will receive EU-funded technical assistance and investment incentives upon completion of their investment projects under the EU4Business-EBRD Credit Line with Incentives. MSMEs reintegrating veterans and war affected persons and companies that suffered destruction and/or loss of assets due to the war on Ukraine will be eligible to receive additional investment incentives for reconstruction and development of their businesses.

“We are grateful to our regular international partner EBRD for the new tranche, which strengthens Oschad's ability to provide more affordable loans to Ukrainian businesses. Such support is especially important for Ukrainian companies that have been significantly affected by the full-scale war. These loans are in great demand among our clients, as they help entrepreneurs not only survive but also develop their businesses during the war,” said Serhii Naumov, Chairman of the Management Board of Oschadbank.

The first tranche of €50 million, provided to the bank in April this year, was utilised ahead of schedule.

Since the start of war in February 2022, EBRD has deployed €5 billion in Ukraine, focusing on supporting energy security, vital infrastructure, food security, trade and the private sector, alongside key policy reforms. The EBRD’s Board of Governors has approved a capital increase of €4 billion to support further investment at this level in wartime.