Small business to get US$ 100m loans

Smaller businesses – from micro businesses to medium-sized enterprises – have until the end of 2013 to take advantage of a new US $100m loan facility from the European Bank for Reconstruction and Development (EBRD), launched at the close of 2011. It will be used to develop new loan products including support for rural and agricultural lending through local commercial banks.

Credit Europe Bank Ukraine (CEBU), the Ukrainian subsidiary of the Turkish Fib Group, was the first bank to use the facility through a US$10m loan signed in Kyiv on 20 December 2011, with the intention of using the loan to quadruple lending to small enterprises within two years.

This new facility brings the total value of EBRD funding to support smaller businesses in Ukraine to almost US$520 m, which makes the EBRD the largest lender to small and medium-sized businesses in Ukraine.

The facility is supported by the government of Denmark and the EU Neighbouring Investment Facility, which will finance advisory services to partner banks and specialised centralised training to the medium, small and micro enterprise facility clients.