Raiffeisen Bank Ukraine announces the issuance of a loan portfolio guaranty (LPG) of USD 40 million from United States International Development Finance Corporation (DFC), which will enable the bank to provide up to USD 50 million of loans to Ukrainian micro, small and medium-sized enterprises over the next 8 years.
The LPG Agreement with DFC was developed with technical support from the United States Agency for International Development (USAID). According to the agreement, DFC will cover up to 80% of the risk of default on loans made by Raiffeisen Bank to qualified borrowers under the guaranty.
“The new joint project with DFC and USAID will greatly extend the opportunities for Ukrainian small businesses to get financing, especially considering war-time risks. Companies will be able to receive loans for working capital needs and long-term investment projects which will help the Ukrainian economy to recover, stimulate exports, and create new jobs,” said Oleksandr Pysaruk, CEO of Raiffeisen Bank Ukraine.
“A thriving private sector is critical for Ukraine’s ability to sustain itself in the fight against Russia’s war of aggression and recover with strength and resilience. The United States is proud to be leading the mission of mobilizing private capital to build that capacity. This newest DFC commitment provides crucial support to Ukrainian small businesses,” commented Jim Polan, Vice-President of Development of DFC. “DFC will continue to support the Ukrainian people and their economy as we work towards a prosperous and bright future for Ukraine”.
For information:
U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights. For more information, visit DFC.gov.
United States Agency for International Development (USAID) has worked in Ukraine since 1992, and currently delivers more than 40 activities across a broad portfolio approaching $2 billion. For more information, visit https://www.usaid.gov/ukraine
Raiffeisen Bank JSC, registered on March 27, 1992, is one of the largest foreign-owned banks in Ukraine. In October 2005, it became a part of the Austrian Banking Group Raiffeisen Bank International AG. As of September 30, 2023, Raiffeisen Group held 68.21% of the bank’s shares, while the European Bank For Reconstruction and Development held 30%.
A wide range of banking services is provided to 2.9 million customers of Raiffeisen Bank via the network of about 300 branches across Ukraine, and via the applications Raiffeisen Online and Raiffeisen Business Online, as well as other remote channels, 24/7.
