EIB may provide 100 mln euros to Ukreximbank for MSME loans

MOSCOW. July 24 (Interfax) - The European Investment Bank (EIB) is considering providing 100 million euros to the State Export-Import Bank of Ukraine (Ukreximbank, Kiev) to help it finance investments undertaken by micro, small and medium-sized enterprises (MSMEs), Ukrainian media said, citing the EIB website.

"The aim is to enhance access to finance to MSMEs and contribute to economic resilience and employment-generating activities in the country," the EIB said.

The project is now at the evaluation stage, it said.

The EIB has also approved partial portfolio guarantees to Ukreximbank and Ukrgasbank in the amount of 5 million euros and 3 million euros, respectively, to cover their risks as part of new loans aimed to finance projects carried out by MSMEs.

Thus, Ukreximbank may receive a total of 34 million euros in loan portfolio guarantees, and Ukrgasbank a total of 22 million euros. Both projects were approved on July 16, 2024.

According the National Bank of Ukraine data as of June 1, 2024, Ukreximbank was the third largest bank by total assets (293.9 billion hryvni) out of Ukraine's 63 operating banks, while Ukrgasbank was Ukraine's fifth largest bank by total assets (200.33 billion hryvni). Ukreximbank and Ukrgasbank posted net profit of 3.25 billion hryvni and 1.94 billion hryvni, respectively, in 2023. Both banks are based in Kiev.