KredoBank will receive another EUR 10 million in guarantees from the European Commission

On June 11, during the Ukraine Recovery Conference in Berlin, KredoBank, which is part of the PKO Bank Polski financial group, officially signed letters of intent to increase EU Support for Ukrainian Micro, Small and Medium-Sized Enterprises (MSMEs) with the European Commission and the Polish state-owned Bank Gospodarstwa Krajowego (the Polish Development Bank). 

According to the signed documents, KredoBank will receive an additional 10 million euros of guarantees from the European Commission for lending to Ukrainian enterprises in the frontline zones.

According to the document, which was signed by Miroslav Chekaj, Acting Chairman of the Polish Development Bank, Gert Jan Koopman, Director-General of DG NEAR of the European Commission, and Jacek Shugaev, Chairman of the Board of JSC "KredoBank", the additional guarantee will allow KredoBank to lend to Ukrainian entrepreneurs who are directly affected by Russian aggression and operate in the so-called "red" zones – territories where supply chains have been interrupted, assets have been destroyed, as well as in the areas bordering the occupied territories. After the conclusion of the relevant agreements, the total amount of guarantees under the European Commission's program will be 30 million euros.   

“The European Union stands by Ukraine in these challenging times, to resist the Russian aggression and to recover, reconstruct and modernise the country. We have already delivered over 98 million euro of support in this context. We are pleased to cooperate with key international partners to mobilize public and private investments and amplify the impact of our assistance towards small and medium-sized enterprises, municipalities, and regions, rebuilding infrastructure and fostering green and digital transitions. Looking ahead, we hope the initiatives launched today will contribute to rebuilding the country according to EU rules and standards.”, - noted Olivér Várhelyi, European Commissioner for Neighbourhood and Enlargement.

"The European Commission allocates funds for Ukraine, which is fighting. This is an important step for the recovery of this country. The support for Ukraine revealed today in the form of concrete actions is a new discovery. I am glad that we, as the Polish Development Bank, will take an active part in the implementation of these measures. For us, this is a new stage of cooperation with the European Commission, and I believe that our joint actions will provide real support to the Ukrainian economy," - says Miroslav Chekaj, Acting Chairman of the Polish Development Bank (BGK).

 “From the first days of the full-scale war, we have been side by side with Ukrainian enterprises and Polish business operating in Ukraine. The financial support provided by KredoBank in the form of loans and grants helps to ensure the viability of critical sectors of the Ukrainian economy. So far, since the signing of the first tripartite agreement with the participation of the European Commission, through a partnership with the Polish State Bank (BGK), we managed to issue loans totaling EUR 19.6 million within the framework of this project, of which more than 60% were received by borrowers from the highest risk areas”, - says Jerzy Jacek Shugaev, Chairman of the Board of JSC "Kredobank"

BGK and KredoBank started cooperation under European Union guarantees in January 2023. Due to it, during the first year of the program, KredoBank allocated more than 12 million euros of additional financing, which went to almost 100 enterprises, whereby it was possible to save almost 4 thousand workplaces. The vast majority of funds – 83% of funding – came to enterprises from the "yellow" and "red" zones, i.e. high-risk areas. Credit support was provided mainly to enterprises operating in the agricultural, industrial and agri-food sectors.

At the end of March 2024, the European Commission allocated an additional EUR 10 million in guarantees to KredoBank, which doubled to EUR 20 million the possibility of Kredobank providing loans to firms operating in Ukraine, and allowed to continue financing micro, small and medium-sized enterprises – primarily those operating in high-risk areas, that is, in the territories liberated from occupation and in areas near the zone of active hostilities.

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 problem loans.