Wednesday, April 13, 2016

Ministry of Finance has received a €400 million loan from the EIB to support the real-economy sector, small and medium-sized business

The Ministry of Finance has received a €400 million loan from the European Investment Bank (EIB) to supply loans to the real-economy sector as well as to small and medium-sized business in Ukraine. The Ministry of Finance is actively working to get the economic growth of Ukraine back on track and taking resolute steps to restore loan supply to the Ukrainian economy. To expand funding possibilities for the real-economy sector via Ukrainian banks, the Ministry of Finance contributed to receiving a loan from the EIB to finance small and medium-sized business projects as well as projects related to the social and economic infrastructure including projects for energy efficiency as well as mitigation of climate changes and adjustment to these changes.

According to the terms of the loan, the debtor in this agreement is Ukraine represented by the Ministry of Finance which will be providing loans to selected banks which will be funding the projects of their customers. The agent of the Ministry of Finance in the funds distribution is the state-owned Ukreximbank.
Loan details:
- the loan of the EIB can be provided by the Ministry of Finance to commercial banks which shall be funding mid- and long-term investment projects (up to 10 years) and providing resources for mid-term current assets (starting from 2 years) of private companies in Ukraine;
- the sum of loans to companies can vary from €25 million (for small and medium-sized business) to €50 million for companies employing more than 3000 persons;
- the loan has been provided as a part of the investment project “Core loan for small and medium-sized business and for companies with the middle level of capitalization”.



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