EFSE steps up recovery support to Ukrainian MSMEs through dedicated grant-linked financing in local currency
Berlin, 11 June 2024 – The European Fund for Southeast Europe (EFSE) has committed EUR 10 million in UAH to Bank Lviv, reinforcing its support for micro, small and medium-sized enterprises (MSMEs). To catalyse impact and recovery momentum, the loan facility will be accompanied by dedicated MSME grants that will facilitate access to finance, while helping MSMEs to secure business continuity and viability. Bank Lviv stands out as a pro-active and committed financial partner that continues supporting MSMEs amid unprecedented risks and unclarities.
This new engagement with Bank Lviv was formalized during the Ukraine Recovery Conference in Berlin, underscoring the importance of international support for Ukraine during these critical times.
Ashot Abrahamyan, Chairperson of the Management Board at Bank Lviv, highlighted the impact of the support: "SMEs are the backbone of our economy, and their stability and growth are crucial for Ukraine’s economic progress. With EFSE’s support, we can offer better loan conditions, significantly contributing to the resilience and competitiveness of Ukrainian enterprises both locally and globally."
Andrea Hagmann, EFSE Chairperson, added “The cooperation between EFSE and Bank Lviv is a significant step towards economic recovery in Ukraine, aligning with broader efforts to expedite the country’s recovery and economic integration.”
About EFSE
An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households. As access to financial services is key to developing this segment, EFSE focuses on helping local financial sectors strengthen their ability to provide responsible financing for this target group. Alongside its investment activities through local partners, EFSE multiplies its impact through the EFSE Development Facility, which provides technical assistance, training, and other nonfinancial support to entrepreneurs and institutions. The fund’s impact management system, through its advisor Finance in Motion, underwent an independent verification by impact auditor BlueMark affirming strong Operating Principles for Impact Management alignment in 2021. EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.
Finance in Motion GmbH, Germany, serves as EFSE’s advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager. For more information on the European Fund for Southeast Europe, please visit: www.efse.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
About Bank Lviv
Serving primarily SMEs in Western Ukraine, Bank Lviv has a strong track record in supporting the agricultural sector and environmentally focused companies. As of the end of 2023, the bank reported a loan portfolio of EUR 170 million, demonstrating its commitment and expertise in advancing regional economic growth.
About Finance in Motion
Finance in Motion, Germany serves as EFSE’s advisor and is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities. EFSE’s impact is managed in line with the industry standard Operating Principles for Impact Management, also demonstrated by the strong results of the latest independent verification of the advisor’s impact management practices in 2023.
Media contact EFSE
Louise Daruwalla-Nielsen
Marketing & Communications
Email: press@efse.lu
Phone: +352 691 336 439
Media contact Bank Lviv
Anna-Maria Romanchuk
Head of Marketing
Phone: +38 063 073 8138
mail: marketing@banklviv.com
