EBRD Unlocks €690 Million in New Lending for Ukraine’s Banks Amid Wartime Challenges

The European Bank for Reconstruction and Development (EBRD) has announced new guarantees to Ukraine’s banking sector, unlocking €690 million in financing for critical industries during the ongoing war. This move aims to bolster the country’s economic resilience in key sectors affected by Russia’s invasion.

The EBRD is providing unfunded portfolio risk-sharing facilities to PrivatBank, Ukrgasbank, KredoBank, and Bank Lviv, partially covering credit risks on new loans issued by these institutions. The initiative is supported by the European Union’s Ukraine Investment Framework (UIF). PrivatBank will issue up to €400 million in new loans, Ukrgasbank €150 million, KredoBank €100 million, and Bank Lviv €30 million.

These loans are intended to support critical sectors, including food security, and preserve livelihoods across Ukraine. In addition, up to 20% of the loans will be directed toward micro, small, and medium-sized enterprises (MSMEs) investing in EU-compliant technologies and equipment under the EU4Business-EBRD Credit Line, with technical assistance and incentives funded by the EU.

The initiative is further backed by credit risk mitigations funded by the United States and Canada, and includes targeted programs for business reconstruction and reintegration of war veterans. Energy security investments will also be supported through the EBRD’s Energy Security Support Facility, which provides €175 million for PrivatBank and €150 million for Ukrgasbank.

Additionally, ProCredit Bank will receive €10 million under the EBRD’s Trade Facilitation Programme to enhance trade finance operations and support Ukrainian exporters and importers.

Since Russia’s invasion in 2022, the EBRD has enabled over €2.5 billion in financing for Ukraine’s private sector and remains the country’s largest institutional investor, committing more than €4.5 billion since the conflict began. The EU’s Ukraine Investment Framework, part of the €50 billion Ukraine Facility, is key to incentivizing public and private investments for Ukraine’s recovery, with expectations of mobilizing up to €40 billion in the coming years.