Small and medium-sized enterprises (SMEs) in Ukraine will benefit from a new financing program of 120 million euros (132 million U.S. dollars) organized by the European Union (EU), the European Bank for Reconstruction and Development (EBRD), and its partner banks, said the EBRD on Tuesday.
Three commercial Ukrainian banks, Raiffeisen Bank Aval, ProCredit Bank, and OTP Bank, have already signed up to the program. Up to 70 million euros (77 million dollars) will be provided through them in local currency.
More local financial institutions are expected to join the program in the future.
The program's funds will be provided for investment, as well as the starting capital for local small businesses. The loans given in local currency will protect the businesses from foreign currency fluctuations.
About 1,200 SMEs in Ukraine could receive financing under the program, said Matteo Patrone, the EBRD managing director for Eastern Europe and the Caucasus.
The program will receive financial grant from EU under EU4Business initiative, which aims to improve Ukrainian SME's access to finance and business knowledge through its advisory services, financing and training.