KredoBank received an additional EUR 10 million from the European Commission

On October 8, during the Common Future Congress in Poznan, KredoBank, which is part of the PKO Bank Polski financial group, signed an agreement with Bank Gospodarstwa Krajowego on the implementation of an additional guarantee in the amount of EUR 10 million from the European Commission. 

The funding was allocated as part of the Ukraine Facility (Pillar II) plan to support micro, small and medium-sized businesses in Ukraine that operate near active war zones.

According to the document, the additional guarantee will allow KredoBank to provide loans to Ukrainian entrepreneurs operating in the so-called "red" and "orange" zones (except for the occupied territories), where access to bank financing is especially complicated.

Currently, in accordance with the agreement concluded with BGK on August 28 this year, the European Commission will provide an additional €20 million in guarantees to support Ukrainian companies and thus increase the total amount of guarantees for lending to Ukrainian businesses near the zone of active hostilities to €40 million. Of this amount, €10 million will be used for further cooperation with KredoBank, and another €10 million will be directed to another Ukrainian bank that has joined the program.

“As a development bank with a pillar assessment by the EC, we can actively participate in the implementation of European actions and funds supporting Ukrainian companies. The agreements signed today confirming the allocation of an additional pool of €20 million to guarantee the lending of two Ukrainian banks are the best proof of the effectiveness of the program that has been implemented for many months. This is about real support for Ukrainian business in areas close to the war zone, where it is difficult to obtain new financing”, 
- says Miroslaw Czekaj, President of the Management Board of Bank Gospodarstwa Krajowego.

The mechanism of support for Ukrainian business under the agreement remains unchanged — under its terms, the amount of the European Commission's guarantee will be deposited in a special account with Bank Gospodarstwa Krajowego in Poland and will be used to compensate for losses on non-performing loans. The guarantee will cover 80% of the loan amount.

"KredoBank was one of the first commercial banks in Ukraine to start issuing loans to entrepreneurs operating in the so-called "red" and "orange" zones. Due to the financial resources provided by KredoBank in partnership with the European Commission and BGK, our clients have created almost 6 thousand jobs. For now, the agricultural sector is one of the key areas of our lending, having almost 50% of the total limit of the current EC program.  We greatly appreciate our long-term cooperation with international partners. The Ukrainian private sector, which is currently operating in a high-risk area, needs even more financial support to survive and provide critical resources to Ukrainians living in these areas,"
- says Jakub Karnowski, The First Vice Chairman of the Management Board of JSC “KredoBank”

BGK and Kredobank started cooperation under European Union guarantees in January 2023. At the beginning of October 2024, the amount of EU guarantees provided amounted to EUR 20 million, and this allowed the bank to issue loans for more than EUR 24 million to Ukrainian businesses. 

The vast majority of funds — almost 70% of funding — came to enterprises from the "orange" and "red" zones, i.e. high-risk areas. Credit support was provided mainly to enterprises operating in the agricultural, industrial and agri-food sectors.