- The Ukrainian KredoBank, which is part of the PKO Bank Polski capital group, and the European Bank for Reconstruction and Development (EBRD) signed an agreement to support the Ukrainian economy.
- The EBRD loan guarantees will generate €100 million in new funding for the strategic sectors such as food production.
- Some entrepreneurs who benefit from the EBRD guarantee will also be able to benefit from grant support under the EBRD's SME Competitiveness Programme ("EaP SMEC Sub-loans").
- The EBRD is also opening a cap of €25 million to finance investments supporting foreign trade.
Agreement signed by the Ukrainian KredoBank (belonging to the Capital Group PKO Bank Polski) with the European Bank for Reconstruction and Development (EBRD) will enable the launch of financing for Ukrainian entrepreneurs in the total amount of 125 million euros. The collaboration covers three solutions. The first is the loan guarantees, which allows generating loans of up to 100 million euros. The second option is investment incentives: some entrepreneurs will be able to receive grant support under the EBRD's SME Competitiveness Programme ("EaP SMEC Sub-loans"). The third option is for the EBRD to open up a limit of €25 million to finance investments supporting foreign trade.
Under the risk-sharing agreement signed in London, the EBRD will secure 50% of the credit risk in the scope of new financing of up to EUR 100 million granted by KredoBank.
- Ukraine's needs today are enormous. The Ukrainian economy needs constant access to external financing to survive and continue to function. The same applies to companies operating in the Ukrainian market. At this stage, the assistance of international institutions such as the European Bank for Reconstruction and Development (EBRD), which have the appropriate mandate and the funds needed to implement assistance measures, is invaluable. Moreover, according to our calculations (the World Bank and the Government of Ukraine), Ukraine may need financing of up to USD 750 billion by 2032. Therefore, this and any subsequent agreement of financial support for the Ukrainian economy is extremely important: says Andrzej Kopyrski, Vice President of the Management Board of PKO Bank Polski.
The agreement signed by KredoBank and the EBRD will benefit entrepreneurs from strategic sectors during the war with Russia. The agreement will increase the access to finance for Ukrainian companies operating in industries such as the agricultural sector and agricultural services, food processing, transport and logistics, retail and pharmacy.
- Every day, Ukrainian cities are exposed to significant damage and suffer great losses due to Russian missile attacks. This spring, almost a quarter of the land available for sowing was not sown, and it will take at least 10 years to clear land mines that were under occupation or are close to the front line. Ukrainian business therefore needs loans to survive and even just to operate. As a part of the PKO Bank Polski Capital Group, KredoBank, helps Ukrainian entrepreneurs to continue working during the war. The risk-sharing agreement with the European Bank for Reconstruction and Development opens up new opportunities to increase the value of lending to Ukrainian business and support critical sectors of the Ukrainian economy - says Jacek Szugajew, President of the Board, KredoBank SA.
In addition, some entrepreneurs benefiting from financing with EBRD guarantees will be able to receive technical assistance and investment incentives under the EBRD's SME Competitiveness Programme ("EaP SMEC Sub-loans"). Eligible borrowers will receive grant support upon completion of their investment projects. Investments should meet the programme criteria and include among others the financing sustainable development, promoting green investment.
The EBRD also opened a limit of up to 25 million Euros available with Trade Facilitation Programme (TFP). Thanks to participation in the program, KredoBank will strengthen the support of Ukrainian exporters and importers. TFP is an important financial tool for KredoBank that will help to meet the increased demand from Ukrainian entrepreneurs for foreign trade support tools.
PKO Bank Polski will continue to support clients through the development of Kredobank's activities. Ukrainian KredoBank has a unique position, especially it has been on the list of systemically important banks of the National Bank of Ukraine (NBU) since March 2022. At the moment, there are 67 branches of KredoBank serving the customers.
