Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 

Home > News

Supporting small business in the west of Ukraine via Bank Lviv

14.08.2023 13:18 "Agro Perspectiva" (Kyiv) With EU support, EBRD lends EUR15 million local currency equivalent and provides EUR7.5 million guarantee to facilitate SME lending by Bank Lviv

. EBRD provides EUR15 million equivalent local-currency loan and EUR7.5 million guarantee

Facilities will enable EUR30 million of new financing by Bank Lviv

15 per cent of new loans to finance long-term EU-compliant sustainable investments by SMEs

The European Bank for Reconstruction and Development (EBRD) is providing a financial package to Ukraines Bank Lviv, comprised of a local-currency loan for the equivalent of EUR15 million and of a EUR7.5 million risk-sharing instrument. This will support 30 million loans to private micro-, small- and medium-sized enterprises (MSMEs), including those affected by Russias war on Ukraine.

Since the Russias full-scale invasion of Ukraine in February 2022, more than five and a half million Ukrainians have relocated to the western part of the country from other regions, some bringing their businesses with them.

The loan, divided into two tranches — EUR10 million committed and 5 million uncommitted, each maturing after three years — will help Bank Lviv to maintain a sustainable and diversified funding base to provide continuing access to medium-term finance for businesses. The loans funding costs will be reduced by the local currency interest rate subsidy from the European Unions EU4Business initiative in Ukraine.

The EUR7.5 million unfunded risk-sharing instrument will be provided in two equal tranches, each covering 50 per cent of the credit risk of Bank Lvivs newly originated loans up to a total value of EUR30 million, subject to a portfolio cap of 50 per cent. This facility will help Bank Lviv to provide access to finance for Ukrainian companies operating in critical industries such as primary agriculture and agricultural services, food processing, transport and logistics, retail and pharmaceuticals.

In addition, up to EUR4.5 million of the total EUR30 million covered portfolio will support private MSMEs long-term investments in EU compliant and green technologies. Eligible sub-borrowers will also receive EU-funded technical assistance and investment incentives upon completion of their investment projects.

EBRDs exposure under both facilities will be supported by a 50 per cent donor-funded first-loss risk cover as part of the Banks resilience package arrangements.

Owned by European shareholders, JSC Bank Lviv is one of the fastest-growing banks in the west of Ukraine with 19 branches in the region as well as its headquarters in the regional capital Lviv. The bank primarily deals with MSMEs and is undergoing a major transformation towards sustainable business expansion in its home region, increasing its loan portfolio from US$ 35 million in 2017 to US$ 133 million in the first quarter of 2023.

The EBRD, which is Ukraines largest institutional investor, has committed to investing EUR3 billion there in 2022–23.

The EBRD was swift to condemn the Russian invasion and pledged to stand by Ukraine. In early April 2022, the EBRDs Board of Governors voted to suspend open-endedly the access of Russia and Belarus to EBRD finance and expertise, and the Bank has closed its offices in both countries.

As well as a resilience package for Ukraine and neighbouring countries affected by the war, the EBRD has pledged to help finance Ukraines reconstruction once conditions permit.

Agro Perspectiva

< Russia Withdraws from Black Sea Grain Initiative All news for
EBRD provides EUR60 million guarantee to support lending by Ukraines PrivatBank >

18:25 Two years of Solidarity Lanes have brought the EU, Ukraine and Moldova closer together
08:10 Seven additional private sector leaders announce support for Antimicrobial Use Stewardship Principles in poultry, now includes over 40% of global poultry meat production
23:32 EU extends trade support to Ukraine for one more year
04:36 European Union corn is forecast at 18.0 million tons
18:55 2024/25 Grain Consumption Expands while Trade Moderates
18:47 Oilseeds Stocks Forecast to Reach Record Highs in 2024/25
09:17 The International Year of the Woman Farmer in 2026 Approved by the UN General Assembly, it will increase awareness of the crucial role women farmers play in agrifood systems
08:10 2024 wheat forecast trimmed
21:25 Rising international quotations for meat, cereals and vegetable oils offset drops for dairy and sugar
07:10 El Niño and La Niña: four crucial steps to build climate resilience
08:25 Acute hunger remains persistently high in 59 countries with 1 in 5 people assessed in need of critical urgent action
10:43 New CEO at BASF: Martin Brudermüller hands over to Markus Kamieth
09:45 Parliament approves a revision of the EUs common agricultural policy
16:23 MEPs approve trade support measures for Ukraine with protection for EU farmers
18:08 Ministry of Agrarian Policy and Food predicts this years harvest of grains and oilseeds at about 74 million tonnes
12:12 West Africa Cocoa Shortage Pushes Up Prices
23:48 U.S. Soybean Meal Exports Forecast at Consecutive Records in 2022/23 and 2023/24
23:10 EU Wheat Exports Challenged by Russias Growing Dominance
11:30 Country of origin of honey must be clearly visible on the label. EU honey traceability system to be developed
15:59 Commission starts setting up the Agriculture and Food Chain Observatory
15:33 Commission approves 2.2 billion German State aid scheme to support the decarbonisation of industrial processes to foster the transition to a net-zero economy
13:17 Donau Soja urges EU for clarity on EUDR implementation
10:44 Ukraine remained the third source of EU imports in 2023, with a value of EUR 11.8 billion
10:04 World cereal output seen up in 2023/24
09:55 FAO Food Price Index rises in March
10:04 Shellfish Crop Insurance Program Offers Oyster Producers Needed Protection from Environmental Challenges and More
23:01 Croatian horseradish root Ludbreški hren' added to register of Protected Designations of Origin
10:15 FAO and chef Fatmata Binta announce new project to empower women fonio producers in Ghana
12:55 Council compromise on Ukraine ATMs Only a half step forward in the right direction
09:18 Commission approves amendment to Italian State aid scheme to support companies in Friuli Venezia Giulia in the context of Russia's war against Ukraine
10:55 Projected famine in Gaza: FAO urges immediate access to deliver urgent and critical assistance at scale. About 1.1 million people are experiencing catastrophic food insecurity
08:44 EU makes major step forward in the delivery of 2024 humanitarian aid for Palestinians in Gaza*
16:17 Commission approves 86.9 million Bulgarian State aid scheme to support farmers in the context of Russia's war against Ukraine
11:15 Commission takes action to boost biotechnology and biomanufacturing in the EU
11:13 Deal to extend trade support for Ukraine with safeguards for EU farmers
09:43 CAP - The Commission proposes simplifications that safeguard agricultural transitions!
23:10 The European Union and Switzerland launch negotiations to deepen bilateral relations
10:05 Commission proposes targeted review of Common Agricultural Policy to support EU farmers
23:36 Cargill Power CanolaTM Program Helps Farmers Take Advantage of Growing Bioenergy Market Opportunities for Canadian Canola
23:19 FAO will provide Ukrainian farmers with soybean and sunflower seeds for spring sowing campaign
23:27 FAO urges more cooperation in banana sector, significant for some least developed and low-income food-deficit countries and smallholder farmers
16:51 The European Commission sets out key steps for managing climate risks to protect people and prosperity
20:25 Coreper and COMENVI approve the provisional agreement on EU Carbon Removal Certification Framework
20:24 INTA MEPs fail EU producers by dismissing potential improvements to Ukraine ATMs
08:10 Soybean meal is expected to be a more competitive feed ingredient on higher global supplies.
09:11 U.S. Corn Exports Shift Destinations as Brazil Captures China Market
15:20 Conflicts push acute food insecurity higher
13:21 FAO Food Price Index declines further in February
13:14 Packaging: Council and Parliament strike a deal to make packaging more sustainable and reduce packaging waste in the EU
11:45 Commission approves 61.3 million Bulgarian State aid scheme to support farmers, producers of grain and oil crops, in the context of Russia's war against Ukraine

Also available: 

NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2024 © Agrarika, ltd.
tel.: +380 67 4473802; +380 67 5964652
e-mail: client@agroperspectiva.com