The European Bank for Reconstruction and Development (EBRD) is providing Oschadbank with a EUR 50 million portfolio risk-sharing facility, which will enable it to generate an additional EUR 200 million in new financing for Ukraine's private sector in times of war.

The relevant document was signed on April 9 in Kyiv as part of the Reintegration of Veterans conference, in which Oschad was a partner.

The EBRD loan will cover up to 50% of Oschadbank's credit risk on new loans worth EUR 200 million to private enterprises operating in Ukraine.

The total amount of financing provided through similar EBRD guarantees since the beginning of Russia's full-scale war against Ukraine has increased to around €900 million as of the end of 2023.

The EBRD guarantee strengthens Oschadbank's lending capacity and allows it to provide much-needed financing to Ukrainian private companies operating in critical sectors such as agriculture, construction, transport and pharmaceuticals. The guarantee will contribute to Ukraine's economic resilience and post-war recovery.

"I am grateful to our EBRD partners for expanding the program. Such instruments allow Oschad to support its business even in conditions when, due to the objective realities of a major war, there are not enough assets to pledge. Risk-sharing programs are extremely important now, because without credit support for entrepreneurship, we cannot hope for the sustainability of the Ukrainian economy. The loans are in great demand among our clients," commented Serhii Naumov, Chairman of the Board of Oschadbank.

The United States, through the Central Emergency Response Fund (CERF), is providing first loss coverage to partially mitigate the risk associated with the new financing.

Up to 20% of the risk-sharing loans will support long-term investments by private micro, small and medium-sized enterprises (MSMEs) in EU-compliant environmental technologies, improving the competitiveness of Ukrainian MSMEs in domestic and foreign markets. Sub-borrowers will also receive EU-funded technical assistance. MSMEs whose assets have been destroyed and/or lost as a result of the war in Ukraine will have the opportunity to receive additional investment incentives to rebuild their businesses under the EBRD-EU Enterprise Recovery Facility under the EU4Business initiative.

Part of this investment will be the EBRD's cooperation with Oschadbank on a program to support the reintegration of veterans. This will include the development of veteran-friendly HR policies, the launch of inclusive financial services, and physical adaptation needed by war veterans, people with disabilities, and those who have suffered trauma. MSMEs that contribute to the reintegration of veterans will receive additional financial incentives from the CERF to offset investment costs.

Oschadbank is a universal state-owned bank. It is the second-largest bank in Ukraine, serving more than 6.2 million retail customers, more than 4 thousand corporate and 224 thousand MSMEs customers.

Since the beginning of the war, the EBRD has committed €4 billion to Ukraine. In addition to supporting the private sector, its strategic priorities are to support energy, food security and vital infrastructure in the country.

Press service of Oschadbank