The EBRD provides a €200M guarantee for business lending.

The EBRD has provided Oschadbank with a limit for the portfolio mechanism for risk distribution of €50M. This will generate an additional €200M in new financing for Ukraine’s private sector. The EBRD loan will cover up to 50% of Oschadbank’s credit risk for new loans to private businesses operating in Ukraine.

The EBRD guarantee will strengthen Oschadbank’s lending capacity and allow it to provide much-needed financing to Ukrainian private companies operating in the agriculture, construction, transport, and pharmaceutical industries. The guarantee will contribute to economic stability and the post-war reconstruction of Ukraine.

In addition, the US provides first-loss risk coverage through the Crisis Response Special Fund to partially mitigate the risk associated with new financing.

“Up to 20% of loans with risk sharing will contribute to long-term investments of private micro, small, and medium-sized businesses (MSMEs) in environmental technologies that comply with EU requirements, improving the competitiveness of Ukrainian MSMEs on the domestic and foreign markets,” Oschadbank noted.