Signature(s)
Summary sheet
- Credit lines - Credit lines
The operation consists of a EU4Business Guarantee Facility (GF) II - Partial Portfolio Guarantee to Piraeus Bank in Ukraine.
The aim is to enable the intermediary to improve lending terms and conditions and thus enhance access to finance for micro-, small- and medium-sized enterprises in the country.
This operation aims to support private sector development and provide financing to projects promoted by micro, small and medium-sized enterprises (MSMEs) in Ukraine, through a guarantee to Piraeus Bank, thereby contributing to promote inclusive growth, sustain employment and reinforce long-term economic resilience.
The war started by the Russian invasion in February 2022 have disrupted and negatively impacted Ukrainian MSMEs. Migration of the workforce and a reduction in consumer demand have hampered business activity and economic growth. MSMEs, particularly those located near conflict zones, have been hit particularly hard, and many have been forced to relocate their operations, either to other parts of Ukraine or neighbouring countries.
Thanks to this guarantee, Piraeus Bank will be incentivised to enhance access to finance for riskier MSMEs by improving financing terms, including in the form of reduced collateral requirements and/or lower interest rates.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.