The European Bank for Reconstruction and Development (EBRD) provided Oschadbank with the second tranche of the portfolio risk distribution tool in the amount of EUR 75 million.
This is stated in the message of Oschadbank, Ukrainian News Agency reports.
These funds will significantly reduce collateral requirements for borrowers, making such loans more affordable.
A significant proportion of subloans with risk sharing will be aimed at supporting vulnerable groups of borrowers: enterprises that have suffered loss and/or destruction of assets, those supporting the reintegration of veterans and war victims, internally displaced persons, persons with disabilities, companies relocated from territories, affected by the war or working in these areas, as well as companies led by women and youth.
Up to EUR 15 million (equivalent) of loans with distributed risk under this tranche will be aimed at supporting long-term investments of private micro, small and medium-sized enterprises (MSMEs) in EU-compliant and green technologies, which will increase the competitiveness of Ukrainian MSMEs on the 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 Incentive Credit Line.
MSMEs that reintegrate veterans and war victims, as well as companies that have suffered destruction and/or loss of assets as a result of the war in Ukraine, will be eligible for additional investment incentives to rebuild and develop their businesses.
The first tranche of EUR 50 million, provided to the bank in April this year, was used ahead of schedule.
As Ukrainian News Agency earlier reported, since the start of the war in February 2022, the EBRD has directed EUR 5 billion to Ukraine, focusing on supporting energy security, vital infrastructure, food security, trade and the private sector, as well as key political reforms.
The EBRD's board of directors approved a capital increase of EUR 4 billion to support further investment at this level during wartime.
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