EFSE grants EUR 40 mln in loans to Oschadbank, Ukrgasbank to finance Ukrainian SMEs
The European Fund for Southeast Europe (EFSE), through its Ukraine Sub-Fund (USF), has extended EUR 40 million in credit to Ukraine's state-owned Oschadbank and Ukrgasbank – EUR 20 million to each institution – to support the development of small and medium-sized enterprises (SMEs).
"As part of its partnership with Ukrgasbank, EFSE has provided EUR 20 million in the form of a long-term credit line in the hryvnia equivalent. This credit facility, complemented by a grant program, is an investment in the resilience and development of Ukrainian businesses," Ukrgasbank announced on its website on Wednesday.
The initiative aims to expand access to local currency financing for Ukrainian entrepreneurs, particularly in war-affected regions and among vulnerable groups such as women and veterans. It is designed not only to meet businesses' immediate needs during wartime but also to help fuel the country's future economic recovery.
"Oschadbank has received a EUR 20 million long-term loan in national currency, along with a special grant component for end borrowers, which will enhance financial support for micro, small, and medium-sized enterprises," Oschadbank said.
The partnership agreements were signed on June 17, 2025, in Chișinău during the celebration of the first anniversary of the EFSE Ukraine Sub-Fund under the theme "Unlocking Potential: Shaping the Future of Lending in Ukraine."
The European Fund for Southeast Europe (EFSE) is an investment fund established in 2005 to support economic development in Southeast Europe and the EU's Eastern Neighborhood countries. It was initiated by the development bank KfW with support from the German government and the European Commission. EFSE operates as a public-private partnership funded by international donors and investors. The fund's portfolio manager is Finance in Motion (Germany), and its fund manager is Hauck & Aufhäuser (Luxembourg).