On January 26, 2023, a loan agreement was signed at the Ministry of Finance between the Entrepreneurship Development Fund (EDF) and JSC JSCB Lviv (Bank Lviv), providing for financing of about UAH 120 million for investments of small and medium-sized enterprises (SMEs) in the field of energy supply and energy efficiency.
The cooperation will take place within the framework of the Refinancing of Energy Efficiency Investments of Ukrainian SMEs through the Financial Sector project. The project is funded by the Government of Germany through the KfW Development Bank with the assistance of the Ministry of Finance of Ukraine.
“The Ministry of Finance continues to attract international financial assistance to Ukraine, which is currently fighting the russian aggressor. The German government remains our reliable partner, in particular, the KfW Development Bank provides systematic support to small and medium-sized businesses, which is especially crucial in the field of energy supply and energy efficiency,” said Deputy Minister of Finance of Ukraine for European Integration Yuriy Draganchuk.
Dr. Bianca Clausen, Head of Sustainable Economic Development for Eastern Europe, Turkey and Central Asia at KfW Development Bank, said that an important part of the project was the consulting support of partner banks and exchange of experience. The Ukrainian banking system should adopt technologies for lending to energy efficient projects and reach international standards. The international approach to financing sustainable development deserves special attention.
Under the EU4Business initiative, SME lending will be provided in local currency, thus avoiding currency risks. This funding can also be combined with the Affordable Loans at 5-7-9% State Program.
“Thanks to the EU’s financial support, the Entrepreneurship Development Fund has the opportunity to offer Ukrainian banks and SMEs a loan resource in national currency, which can be combined with the Affordable Loans at 5-7-9% Program to ensure availability of energy-efficient investments for SMEs in a rather difficult time,” said Andriy Gapon, Executive Director of the EDF.
Using the loan, Bank Lviv will soon start financing investment projects of small and medium-sized businesses in the field of energy saving and energy supply.
“It is impossible to strengthen country’s energy independence without active involvement of small and medium-sized businesses. The Government of Ukraine understands this. We, the bankers, also understand it. The willingness of the German Government to invest in Ukrainian business is very valuable. Our agreement will allow us to implement energy-efficient solutions right now. Despite the constant power cuts, Ukrainian companies continue to operate and even find resources to rebuild the economy. It is our duty to nourish their desire for growth,” commented Ashot Abrahamyan, Chairman of the Board of Bank Lviv.
As a reminder, recently, within the framework of the Refinancing Energy Efficiency Investments of Ukrainian SMEs through the Financial Sector project, the EDF signed an agreement to finance SME investments in energy supply and energy efficiency jointly with JSB Ukrgasbank.