EBRD provides €15 million equivalent local-currency loan and €7.5 million guarantee to Ukraine’s Bank Lviv

The European Bank for Reconstruction and Development (EBRD) is providing a financial package to Ukraine’s Bank Lviv, consisting of a local-currency loan for the equivalent of €15 million and of a €7.5 million risk-sharing instrument. This will support €30 million loans to private micro-, small- and medium-sized enterprises (MSMEs), including those affected by Russia’s war on Ukraine.

Since Russia’s full-scale invasion of Ukraine in February 2022, more than five and a half million Ukrainians have relocated to the western part of the country from other regions, some bringing their businesses with them.

The loan, divided into two tranches – €10 million committed and €5 million uncommitted, each maturing after three years – will help Bank Lviv to maintain a sustainable and diversified funding base to provide continuing access to medium-term finance for businesses. The loan’s funding costs will be reduced by the local currency interest rate subsidy from the European Union’s EU4Business initiative in Ukraine.

The €7.5 million unfunded risk-sharing instrument will be provided in two equal tranches, each covering 50 per cent of the credit risk of Bank Lviv’s newly originated loans up to a total value of €30 million, subject to a portfolio cap of 50 per cent. This facility will help Bank Lviv to provide access to finance for Ukrainian companies operating in critical industries such as primary agriculture and agricultural services, food processing, transport and logistics, retail and pharmaceuticals.

Owned by European shareholders, JSC Bank Lviv is one of the fastest-growing banks in the west of Ukraine with 19 branches in the region as well as its headquarters in the regional capital Lviv. 

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Press release