The EBRD and the leading Ukrainian leasing company OTP Leasing help local small and medium-sized enterprises (SMEs) to continue their operations, despite the current market situation caused by the spread of coronavirus (COVID-19).
EBRD 4-Year Loan € 15 Million Granted to OTP Leasing Will Promote Long-Term SME Leasing Operations Across the Country. The funding will be provided under the EU4Business-EBRD Credit Facility, which is being implemented in the context of the Deep and Comprehensive Free Trade Area Agreement (DCFTA) between the European Union (EU) and Ukraine.
Following the decision of the Board of Directors of the EBRD to provide a package of solidarity assistance to clients in all countries, including Ukraine, the Bank not only continues its normal activities but is also ready to increase the amount of assistance if needed.
Financing will be available for clients of € OTP Leasing in UAH and/or Euro. Hryvnia lending will protect borrowers from currency risks and will be offered with longer maturities.
In addition, the EU will provide eligible companies with grants as investment incentives that will reduce the cost of capital investments for these companies to modernize technology and manufacturing processes in accordance with EU standards and regulations.
The Managing Director of the EBRD in Eastern Europe and the Caucasus, Matteo Patrons, said: “The agreement we signed with our partners at OTP Leasing (Ukraine) indicates that we plan to develop the business for the long term. We are especially grateful to the EU for its continued commitment to our common goals at a difficult time. Customers from the private and public sectors, including SMEs, can fully rely on our support and flexibility. Our goal is to maintain the record level of investment we achieved in 2019 and use our resources in the areas where they are most in need. ”
Andrey Pavlushin, CEO of OTP Leasing, said: “We are very pleased to have signed four agreements with the EBRD for a total of EUR 52 million. Today’s agreement will help us fund at least 100 companies across the country. For us, this is an opportunity to increase our market share in the SME segment, as well as to diversify our portfolio. ”