On December 22 the German-Ukrainian Fund and the JSC “Oschadbank” signed a Memorandum on strategic partnership and cooperation marking the resumed loan supply for the Ukrainian economy and the mutual wish to extend financial support for small and medium-sized businesses.
The signing of this Memorandum is aimed to provide funding for the investment projects of small and medium-sized businesses under the programs of the German-Ukrainian Fund.
What’s in it for Ukraine?
- according to the signed Memorandum, the German-Ukrainian Fund shall provide the JSC “Oschadbank” loans and a package of advisory support to develop procedures and methodology for approving loans to small and medium-sized businesses;
- this support will enhance the role of the JSC “Oschadbank” in the loan supply of the Ukrainian economy.
Why is it important?
The extended financial support for small and medium-sized businesses will contribute to the reduction of interest rates on loans.
“With the engagement of one of the largest Ukrainian banks – Oschadbank – as a partner of the German-Ukrainian Fund, small and medium-sized businesses receive more opportunities for the funding of their investment projects. The German Government has always supported projects whose aim is to develop the infrastructure for the funding of small and medium-sized businesses, and this Memorandum is a good sign for us and for other international organizations reflecting the fact that this support is much needed and important for the further development of the real economy sector in Ukraine”, Daniela Bergel, the head of the economic cooperation and development department of the German Embassy to Ukraine, said.
“Oschadbank is consistently implementing its modernization strategy. This is its resolute implementation of the transformation plan which has made this bank attractive for international financial institutions. Oschadbank has become open and clear, and this is the main condition for successful cooperation. With its extensive experience in cooperating with the state sector of the economy, big infrastructure projects as well as the fuel and energy sector – fundamental sectors of the economy where Oschadbank spent 15 years gaining its unique competence – the bank has opened a new important business field. Micro-, small and medium sized businesses now pose one more priority for Oschadbank which is now the focal point of our efforts in cooperation with international partners.The way of commercialization and diversification of the loan portfolio, openness and reporting on the corporate management which Oschadbank has been pursuing for the last two years and a half in strategic partnership with international financial organizations makes this state-owned bank even more stable and reliable for citizens and business. The main thing is that it opens new prospects and opportunities for the resumption of the economic growth of our country”, Oschadbank’s chairman of the board Andriy Pyshny emphasized.
“The German-Ukrainian Fund is glad to see Oschadbank among its partner banks, since it helps significantly extend the geography and presence of our programs for the funding support of small and medium-sized businesses in the entire Ukraine thanks to the comprehensive office network of the bank. Also, the development of the procedures and technologies for granting microloans will contribute to the lower loan procedure costs for small and medium-sized companies, which will foster lower interest rates on these loans and improve their accessibility”, executive director of the Fund Oleg Strynzha said.
- the German-Ukrainian Fund (GUF) is a non-banking financial institution founded in 1999;
- the GUF participants are the National Bank of Ukraine (31.3%), Ministry of Finance of Ukraine (31.3%) and the German Credit Institution for Re-Construction (KfW) (37.4%);
- the GUF support the development of micro-, small and medium-sized businesses by granting them loans via Ukrainian banks;
- the funds of the GUF are managed by the state institution “Office for the Administration of International Financial Cooperation Projects” created at the Ministry of Finance of Ukraine with the aim to ensure the efficient implementation of investment projects and international technical assistance projects developed for Ukraine by international financial organizations.