EIB, EC to extend 30 mln euros in guarantees on Ukrainian bank loans for small, medium businesses

MOSCOW. June 23 (Interfax) - The European Investment Bank (EIB) and the European Commission will extend 30 million euros under the EU4Business Guarantee Facility in guarantees on bank loans for small and medium-sized businesses in Ukraine that have incurred losses because of the crisis, Ukrainian media have reported with reference to the EIB's statement.

"The EU4Business Guarantee Facility will support small and medium businesses in Eastern Partnership countries, with a strong focus on Ukrainian firms," it said.

The new facility amounts to 40 million euros, including 30 million euros to be dedicated to Ukraine and the rest made available to banks in Moldova, Georgia, Armenia, and Azerbaijan, it said.

"The facility is expected to unlock 500 million euros in loans in the entire Eastern Partnership region, of which 375 million euros in Ukraine," it said.

Special significance will be attached to providing credit risk coverage for small and medium businesses operating in the Ukrainian agricultural, manufacturing, and trade sectors.

The facility will be implemented by the European Investment Fund (EIF), the EIB Group's subsidiary responsible for small and medium businesses.

EIF Chief Investment Officer Alessandro Tappi said the fund started to work in Ukraine seven years ago, guaranteeing up to 415 million euro worth of loans. Earlier this year, it approved an increase of the guaranteed volume for a further 125 million euros of lending, he said.