ProCredit Bank and the European Bank for Reconstruction and Development is expanding guarantee programme to support lending to Ukrainian business

Supported by the European Union, ProCredit Bank and the European Bank for Reconstruction and Development (EBRD), signed an agreement about providing risk-sharing instrument. This agreement guarantees back up to 50 percent of the credit risk of €30 million in financing to private business in Ukraine from ProCredit Bank.

Lending guarantees, provided by EBRD, will help ProCredit Bank Ukraine to finance Ukrainian business, operating in critical industries such as agriculture, food production, transport and logistics, energy security and retail. Since the war began, Ukrainian companies had constrained access to financing, therefore EBRD guarantee will allow ProCredit Bank to provide crucial support to business, preserving livelihoods during the war.

JSC ProCredit Bank is a 100 percent owned subsidiary of ProCredit Holding AG and Co. KGaA, based in Frankfurt, Germany. ProCredit Bank is a market leader in the financing of SMEs in Ukraine. Currently SME account for more than 98 percent of the bank’s loan book.

The EBRD, Ukraine’s biggest institutional investor, deployed €1.7 billion in Ukraine and mobilized a further €200 million from partner banks in 2022. The Bank has committed to deploying €3 billion there in 2022-23 and has so far mobilized €1.5 billion from international donors. The EBRD’s primary focus for Ukraine during the war is on maintaining energy and food security, restoring critical infrastructure at the national and municipal level, providing trade finance and supporting the private sector.