KredoBank implements a new program of financial and grant support for Ukrainian business with the maintance of the German government

At the end of 2023, KredoBank began cooperation with the German fund of the German financial group Sparkassenstiftung for International Cooperation (GSIC). The financing is carried out by the German government within the framework of the program "Access to financing and support for the sustainability of MSMEs in Ukraine 2". At the first stage, the bank will provide grant support to Ukrainian business in the amount of 800 thousand euros.

Funding and grant support under the partnership can be provided for micro and small enterprises for the implementation of small projects. In the priority of the program is the financing of internally displaced enterprises and enterprises in host communities, as well as the enterprises from the de-occupied territories and priority economic sectors.

The amount of grant compensation for investment loans will reach up to 30% of the cost of the relevant projects, and the maximum grant for the final beneficiary can be up to 30,000 euros for internally displaced enterprises and enterprises from the de-occupied territories, and for other clients it can amount up to 20% of the cost of the relevant projects, but not more than 20,000 euros. Representatives of Ukrainian business can take part in the initiative without restrictions on the type of economic activity.

"KredoBank continues to work on raising funds for grant support for its clients of small and medium-sized businesses. Thanks to the Sparkassenstiftung grant program, we can support small Ukrainian business, and the priority task for the bank will be to direct this support to lending to the agricultural sector, food production, logistics, manufacturing and processing enterprises, "says Jerzy Jacek Szugajew, the Chairman of the Board of JSC KredoBank.

The program can be combined with the risk-sharing programs implemented in KredoBank along with the European Bank for Reconstruction and Development and the European Commission/Bank Gospodarstwa Krajowego, as well as the state program "Affordable Loans 5-7-9%," which can create an even stronger effect for Ukrainian business, which needs funding and support due to the wartime conditions. The Memorandum signed between all parties makes it possible today to include clients in the portfolio of those who will receive a grant.

"We are pleased to welcome KredoBank among the program partners. Our mission is to develop the financial sector and the economy, in particular, small and medium-sized businesses. Today small and medium-sized enterprises make up 80% of the economy of the European countries, the same importance they have in Ukraine. At the same time, in war-torn Ukraine, this support acquires a different dimension and meaning - here the support of business and the financial sector saves lives, saves jobs and enables the whole system to function. This project is important for us, and we are happy to develop it with KredoBank ", – says Michael Beck, the project manager of German Sparkassenstiftung for International Cooperation (GSIC) in Europe, Central Asia, the Middle East and North Africa.

The project "Access to financing and support for the sustainability of MSMEs in Ukraine 2" is being implemented within the framework of the international cooperation program ReACT4UA (Resilience/Recovery – Accession – Competitiveness – Trade), funded by the German government and implemented by the German federal company “Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH” in cooperation with German Sparkassenstiftung for International Cooperation (GSIC), the Entrerpreneurship Development Fund (EDF) and partner financial institutions.