EIB Group provides EU-backed guarantees to expand finance for war-affected businesses in Ukraine

This article is published in association with European Investment Bank.

• Two new EU4Business guarantee agreements have been signed with PrivatBank and Ukreximbank to strengthen access to finance for Ukrainian small businesses.
• More than 2 600 businesses are expected to benefit, with a focus on enterprises owned or managed by war veterans, internally displaced people, women and young entrepreneurs.
• This is part of the European Union’s broader support for small businesses under the €50 billion Ukraine Facility.

The European Investment Bank (EIB) and the European Investment Fund (EIF) – together the EIB Group – have signed new EU-backed guarantee agreements with PrivatBank and Ukreximbank to expand access to finance for small and medium-sized enterprises (SMEs) in Ukraine. The financing was made possible by the support of the European Union under the EU4Business Guarantee Facility.

The two agreements will enable partner banks to significantly expand lending to SMEs on more favourable terms, including reduced collateral requirements. In total, the new guarantees are expected to unlock:

• up to €100 million in financing through PrivatBank,
• up to €50 million through Ukreximbank.

Together, this financing is expected to support more than 2 600 SMEs, helping them continue their activities during the war, safeguard jobs and play an essential role in maintaining economic stability and driving recovery. A particular focus has been placed on enterprises displaced or affected by the war, businesses operating near conflict zones and companies owned or managed by war veterans or internally displaced people, as well as youth- and female-led businesses and startups.

European Investment Fund Chief Executive Marjut Falkstedt said: “At a time of extraordinary pressure on Ukraine’s economy, ensuring continued access to finance is essential. Through our cooperation with Ukrainian banks, including PrivatBank and Ukreximbank, the EIB Group is helping ensure that small businesses receive the support they need to withstand the war and continue contributing to jobs and economic resilience.”

European Union Commissioner for Enlargement Marta Kos said:“It is essential to help Ukrainian companies continue operating, protect jobs, and preserve economic stability. Investing in businesses during a war carries risks for both entrepreneurs and banks. With these EU-backed loan agreements, the EU assumes part of that risk, making it easier for thousands of Ukrainian companies to access financing.”

Deputy Chairperson of the Management Board and Chief Finance Officer at PrivatBank Larysa Chernyshova said: “This is a strategic agreement for us, enabling the scaling up of SME financing with the backing of European institutions. During wartime, when access to loans remains one of the key challenges for businesses, such instruments are critical to sustaining economic activity and supporting the country’s recovery. We are grateful to our European partners for helping us provide businesses with much-needed access to affordable financing. It is especially important that this is a long-term agreement, which once again confirms the partners’ faith in Ukrainian business.”  

Member of the Management Board of Ukreximbank Viktoriia Masna said: “The signing of the second guarantee agreement with the EIB Group demonstrates the proven effectiveness of this instrument in supporting Ukrainian small and medium-sized enterprises. In the context of the ongoing war, access to finance remains critical for business continuity. The guarantee will enable Ukreximbank to expand lending on more accessible terms, reduce collateral requirements and channel financing to business that are preserving jobs and contributing to the resilience and recovery of Ukraine’s economy. In addition, the grant component of EU4Business Initiative will provide extra support to vulnerable entrepreneurs, including women, youth and business in war-affected regions. Such support from the EU is vital as it demonstrates EU solidarity with Ukraine, strengthens business resilience amid aggression and promotes equitable recovery.”

Background information

The EIB Group

The European Investment Bank (EIB), the bank of the European Union, has been active in Ukraine since 2007. Following Russia’s full-scale invasion in 2022, the Bank significantly stepped up its support to strengthen the country’s resilience and help rebuild critical infrastructure. Since then, the EIB has provided more than €4 billion in financing to Ukraine. Through its EU for Ukraine (EU4U) Initiative, and its key role in implementing the Ukraine Investment Framework – a dedicated window under the Ukraine Facility, the European Union’s €50 billion financial assistance programme for Ukraine – the EIB is firmly committed to accelerating its activities. This work is carried out in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, EU Member States and international partners.

The European Investment Fund (EIF), part of the EIB Group, supports micro, small and medium-sized enterprises by improving access to finance through guarantees, equity and microfinance instruments, contributing to innovation, growth and employment across Europe.

PrivatBank is the largest state-owned bank of Ukraine. The bank serves over 18 million active customers, while over 70% of Ukrainians use its services. The bank is the leader in retail, introduces new and upgrades existing services for small and medium businesses, has created a strong digital ecosystem and a wide network of over 1 163 branches, 6 858 ATMs, nearly 10 400 self-service terminals and over 316 000 POS terminals across the country. Nearly 18 000 employees make up PrivatBank’s team. PrivatBank works to drive Ukraine’s economy, supporting residents and businesses despite the war.

JSC “The State Export-Import Bank of Ukraine” is a wholly state-owned bank of Ukraine. The bank focuses on financing private clients, supporting export-import operations and cooperating with international financial institutions to facilitate investment, economic resilience and the sustainable development of the Ukrainian economy.