EBRD and EU commit fresh funds to Raiffeisen Bank Aval to support SMEs in Ukraine
Kyiv. 8 October. —
- New financing programme of €25 million for SME clients of Raiffeisen Bank Aval
- Funds will be available in local currency
- Programme to receive financial support under EU4Business programme
Small businesses in Ukraine will benefit from new financing opportunities in local currency offered through EBRD partner banks. Local currency facilities equivalent to €70 million combine EBRD loans and financial support under the EU4Business programme.
Raiffeisen Bank Aval is drawing a local currency loan equivalent to €25 million. The funds will be on-lent for investments as well as for working capital purposes to local small businesses (SMEs), the engine of the local economy and creator of almost 80 per cent of jobs in the country. The local currency loans will protect companies from the volatility of currency exchange rate.
The EU4Business initiative was launched in Ukraine in 2016 and aims to support job-creating Ukrainian businesses by equipping small and medium-sized companies with new skills and supporting their ambitions to export to the largest neighbouring market – the EU single market of more than 500 million consumers.
Thousands of Ukrainian SMEs have already benefited from the EU4Business programme by strengthening their competitiveness in domestic and international markets through in-depth advisory services, financing, training courses and awareness-raising activities.
Ambassador Matti Maasikas, Head of the EU Delegation to Ukraine, said: “Along with practical advices on how to access the EU's Single Market and how to market their products, one of the main goals of the EU4Business initiative in Ukraine is to improve SMEs' access to affordable long-term financing in local currency. We are pleased to team up with EBRD in doing this, so that the Ukrainian SMEs can benefit from such financing”.
Matteo Patrone, EBRD Managing Director, Eastern Europe and the Caucasus, said: “This latest financial initiative by the EBRD and the EU clearly demonstrates our commitment to Ukraine. We are supporting the investment financing of the SME sector, the success of which is essential for the development of the national economy. We are pleased that our long-term partners Raiffeisen Bank Aval, ProCredit Bank Ukraine and OTP Bank Ukraine support this important undertaking, improving access to finance for entrepreneurs across Ukraine”.
Victoria Masna, Head of Investment Banking of Raiffeisen Bank Aval, noted: “We are pleased to be part of this important project of opening more UAH financing opportunities to Ukrainian SMEs. This facility will enable us to support our core SME segment, increase access to long-term financing for Bank’s existing as well as new customers. In course of last few years Raiffeisen Bank Aval has channeled EU Commission sponsored projects to over 600 companies, creating new jobs, increasing productivity and opening access to EU market for local producers”.
The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of almost €13.6 billion through 432 projects in the country.
Raiffeisen Bank Aval JSC was registered on March 27, 1992, from October 2005 it became a part of the Austrian Banking Group Raiffeisen Bank International AG. As of June 30, 2019, Raiffeisen Group owned 68.28% of the bank’s shares, and the European Bank for Reconstruction and Development owned 30%.
A wide range of banking services is provided to 2.5 mio customers of Raiffeisen Bank Aval via the nationwide network, which includes 500 branches around Ukraine.
