Ukraine Facility: Allocation of 7 Billion Euros for Business

by Roman Cheplyk
Friday, May 31, 2024
Ukraine Facility: Allocation of 7 Billion Euros for Business

The Ministry of Economy has announced that within the framework of the Ukraine Facility program, between €1 billion and €1.5 billion will be allocated for business support in 2024

A significant portion, 70%, is earmarked for small and medium-sized enterprises (SMEs). Deputy Minister of Economy Oleksiy Sobolev shared these details during the "Money for Victory" forum by Forbes Ukraine.

Key Points:

  • Support for SMEs: The substantial allocation for SMEs aims to enhance their access to financial resources, reducing the cost of collateral and enabling larger loan amounts.
  • Total Allocation: Over four years, €12 billion is allocated for expanding existing projects by European organizations in Ukraine.
  • Focus Areas: The Ukraine Facility targets seven key industries requiring banking support:
    • Energy
    • Defense industry
    • Agriculture
    • IT
    • Transport
    • Production of critical materials
    • Processing industry
  • Pillar 2 Program: Under this component, €7 billion will be directed towards supporting private, municipal, and state projects through investments.
  • Annual Allocation: In 2024, up to €1.5 billion will replenish programs implemented by international financial organizations in Ukraine, with 70% going to the SME sector.

Benefits for Businesses:

  • Access to Funds: Businesses can work with the European Investment Bank or banks participating in the program to access additional resources.
  • Cost Reduction: The funds can be used to reduce loan costs and collateral requirements, facilitating easier access to larger loans.
  • Direct Collaboration: Businesses with projects worth €30-€50 billion can engage directly with European organizations like KfW or cooperate with Ukrainian banks involved in programs with international financial organizations.

This initiative aims to bolster Ukraine's economic resilience by supporting key industries and promoting the growth of SMEs through enhanced financial support and investment opportunities.

You will be interested