- EBRD and EU build on existing agreement, expanding the EU’s largest intermediated lending programme in Ukraine
- New package unlocks €2 billion of lending through EBRD’s partner financial institutions
- €315 million of additional support in guarantees, grants and technical assistance from EU will help sustain wartime financing for MSMEs and larger companies
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding their support for micro, small and medium-sized enterprises (MSMEs) and larger companies in Ukraine, helping them to maintain their access to finance during the ongoing war.
Following the successful implementation of the first phase of the Financial Inclusion Recovery Programme amid strong market demand, the EU is providing an additional €200 million of guarantees, €105 million of grants and €10 million of technical assistance through its Ukraine Investment Framework.
This new package is expected to unlock €2 billion of new lending through the EBRD’s partner financial institutions (PFIs) in Ukraine, reaching at least 3,000 MSMEs and supporting around 180,000 jobs.
This will scale up financing for Ukrainian MSMEs and larger companies through local financial institutions, boosting the resilience of Ukraine’s private sector in wartime. Building on the full deployment of the initial programme envelope, the initiative will mobilise significant volumes of MSME finance with EU-backed risk‑sharing support.
Ukrainian businesses continue to face severe challenges caused by the war, including rising financing costs, disrupted logistics and the need to replace or modernise damaged equipment. To address these constraints, EU investment incentives grant covering 10 to 30 per cent of eligible investment costs will support MSMEs that are undertaking critical capital investments, with a particular focus on high-performing and green technologies that strengthen competitiveness and support alignment with EU standards.
At least 50 per cent of all investment incentives grants will be directed to priority MSMEs, including businesses that have incurred war-related asset destruction or damage, companies in war-affected territories, veteran-led businesses, enterprises supporting the reintegration of internally displaced persons and persons with disabilities, micro businesses, startups, small farmers, and women- and youth-led businesses.
The programme will also support the revitalisation of Ukraine’s insurance market, with a particular focus on developing war risk insurance solutions. A pilot project will include insurance subsidies for MSMEs.
Part of this expanded support will comprise the Enterprise Security Enhancement (ESE) mechanism, which is being piloted with PFIs in Ukraine. ESE enables banks to provide partial debt relief to borrowers whose assets have been damaged by the war, addressing a critical gap in wartime finance and preserving incentives for long-term investment. The ESE mechanism is expected to be supported under the €200 million first-loss risk cover guarantees provided by the EU under this call, allowing for broader deployment across PFIs. By mitigating credit risk linked to war-related asset losses, ESE will help to sustain lending for capital investment, support business continuity and boost the resilience of Ukraine’s private sector.
The EBRD is Ukraine’s largest institutional investor, having substantially increased its investment in the country since Russia launched its full-scale invasion in 2022. Since the start of the war, the Bank has deployed billions of euros to support the real economy, with a focus on energy security, private-sector resilience and critical infrastructure.
This programme is enabled by the EU’s Ukraine Investment Framework – part of the €50 billion EU’s Ukraine Facility designed to attract public and private investments for the recovery and reconstruction of Ukraine. It is endowed with reinforced financial instruments totalling €9.5 billion.