- The EBRD and the EU are providing additional funding to support IHR in Ukraine
- Financing through OTP Leasing will help increase the competitiveness of companies
- Once the investment is successful, borrowers will be able to receive EU grants
The European Bank for Reconstruction and Development (EBRD) is providing a € 25 million loan to OTP Leasing to increase the competitiveness of micro, small and medium-sized enterprises (SMEs) across Ukraine in the context of the coronavirus pandemic and its economic impacts.
Companies will be able to take advantage of long-term leasing agreements in hryvnia and / or euros, as well as receive grants funded by the European Union (EU) after the successful implementation of their investment projects.
Funding is provided through the EU4Business-EBRD Credit Line with incentive grants. This credit line is a joint program of the EBRD and the EU, which aims to assist companies in modernizing their goods and services in line with EU standards, improving health and safety and implementing “green” approaches in practice.
Improving the quality of goods and services will allow companies to operate more successfully in local and European markets.
The program is also already in place in Georgia and Moldova and will soon be available to companies in Armenia, Azerbaijan and Belarus to make them more competitive, sustainable and green.
Oleksandr Pavlov, Deputy Head of the EBRD for Ukraine in the Financial Institutions Sector, said: “The EBRD provides critical financing to Ukrainian companies together with such powerful local financial institutions as OTP Leasing and in close cooperation with the European Union. Access to finance and modern technology is a key factor for the private sector to help companies meet current challenges, continue to operate, improve results and contribute to job creation and economic development. ”
Founded in 2008, OTP Leasing is a 100% subsidiary of OTP Bank Plc. – a leading regional financial group headquartered in Hungary. It is a leader in the Ukrainian market and offers financial and operational leasing, as well as fleet management services.
OTP Leasing CEO Andriy Pavlushyn said: OTP Leasing plans to increase sales from $ 225 million in 2020. up to $ 245 million in 2021. This growth will be made possible by EBRD financing. This program will allow us to increase the share of SMEs in our total sales and facilitate access to long-term financing for small businesses in Ukraine. “
Chloe Allio, Head of the Operations Sector of the EU Delegation to Ukraine (Economic Cooperation, Energy, Infrastructure and Environment), said: “The EU is pleased to be able to support this joint project of the EBRD and OTP Leasing in the framework of the EU4Business initiative. From the very beginning of the Covid-19 pandemic, we have been working with our partners to ease the requirements and conditions for obtaining funding for SMEs in order to provide them with financial support at this difficult time for the Ukrainian and EU economies.
The EBRD is the largest international financial investor in Ukraine. Since its inception in 1993, the Bank has committed almost € 14.6 billion to 482 projects.
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