EBRD Announces €71.5 Million Package to Support Ukrainian businesses Through Lviv Bank
Lviv, Ukraine – October 30, 2025 – The European Bank for Reconstruction and Development (EBRD) is providing a substantial financial boost to Ukrainian businesses through a new partnership with Lviv Bank. This initiative, approved by the EBRD’s board of directors on October 22, 2025, will unlock critical funding for Micro, Small, and Medium-sized Enterprises (MSMEs) navigating the challenges of the ongoing conflict.
Financial Details and Structure of the Agreement
The complete package includes an unsecured hryvnia loan of up to €40 million to Lviv Bank, complemented by €31.5 million in guarantees designed to mitigate credit risk associated with new lending totaling €45 million. The loan will be disbursed in four tranches of €10 million each, with one tranche already reserved. A significant portion – a minimum of 75% – will be allocated under the EBRD’s resilience and Livelihood Program,while up to 25% will be channeled through the EU4Business-EBRD credit line.
This structure is specifically designed to incentivize long-term capital investments by Ukrainian MSMEs. The Resilience and Livelihood Facility will prioritize support for private businesses, including those that have relocated operations to western Ukraine to escape the fighting. Notably, the risk coverage for this guarantee project surpasses typical arrangements, at 70% compared to the standard 50%, offering enhanced security for lviv Bank.
Focus on MSMEs and Regional impact
According to the EBRD, Bank Lviv is a regionally focused financial institution operating in Western Ukraine. As of the second quarter of 2025, it holds approximately €333 million in total assets, representing 0.5% of the Ukrainian banking market, and ranks 23rd among the nation’s 60 banks. It’s MSME-focused loan portfolio totals approximately €212 million, equivalent to 1.2% of the overall market.
| Key Financial Details | Amount (EUR) |
|---|---|
| loan Amount | 40 Million |
| Guarantees | 31.5 Million |
| Total Package | 71.5 Million |
| Risk Coverage (Guarantee) | 70% |
Did You Know? The EBRD has been a key investor in Ukraine since the early 1990s, providing substantial financial support for the country’s transition to a market economy.
Pro Tip: MSMEs are the backbone of many economies. Access to finance is crucial for their survival and growth, especially during times of crisis.
Long-Term Implications for Ukraine’s Economy
This investment by the EBRD is a powerful signal of confidence in Ukraine’s future and its ability to rebuild. By supporting MSMEs, the package will contribute to job creation, economic stability, and sustainable growth. The increased risk coverage offered through the guarantees demonstrates the EBRD’s commitment to mitigating the unique challenges faced by businesses operating in a conflict zone.
What role do you believe international financial institutions should play in supporting economies affected by conflict? How can governments and banks work together to best foster resilience among MSMEs in challenging environments?
Understanding the EBRD and Its Role in Ukraine
The European Bank for Reconstruction and Development (EBRD) was established in 1991 to support countries transitioning to market economies. Ukraine is a key recipient of EBRD funding, with investments focused on infrastructure, energy efficiency, and private sector development.The EBRD’s commitment to Ukraine has remained strong despite the ongoing conflict, with a focus on providing emergency liquidity, trade finance, and support for essential services. According to the EBRD’s official website, as of late 2024, the bank has invested over €17 billion in Ukraine. EBRD in Ukraine
Frequently Asked Questions About the EBRD and Lviv Bank
- What is the EBRD? The European Bank for Reconstruction and Development is an international financial institution that supports projects in countries transitioning to market economies.
- What is Lviv Bank’s role in this agreement? Bank Lviv will act as the intermediary, distributing the funds to Ukrainian MSMEs.
- What is the Resilience and Livelihood Program? It is an EBRD program designed to help businesses recover and rebuild in areas affected by conflict or crisis.
- What is the EU4Business-EBRD credit line? It’s a program providing financial support and advisory services to MSMEs in Eastern Partnership countries, including Ukraine.
- How will these funds help Ukrainian businesses? The funds will provide access to capital for investment, expansion, and working capital, enabling businesses to survive and grow.
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