EBRD may introduce EUR 50 mln risk-sharing facility with Lviv Bank

The European Bank for Reconstruction and Development (EBRD) is considering introducing a non-funded risk-sharing instrument with Lviv Bank to partially cover the credit risk on new sub-loans totalling up to EUR 50 million equivalent.

According to the bank, the Facility will include two sub-limits with the Covered Portfolio of: EUR 37.5 million under the Resilience and Livelihoods Guarantee product, and EUR 12.5 million under the EU4BusinessEBRD Credit Line with Incentives (assigned with a separate EBRD project number 57426).

Under the RLG program, sub-loans will be used to expand financing for working capital and investment needs of Ukrainian private businesses in key sectors of the economy.

The EBRD enables financing of long-term capital investments of MSMEs to upgrade their technologies and equipment to EU standards, including investments in sustainable and green technologies, thereby enhancing their competitiveness.

Eligible sub-borrowers will also receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their investment projects.

The instrument is planned to be used to support lending to Ukrainian private companies in agriculture and other critical sectors, in particular food processing, retail, and logistics, with the ultimate goal of preserving sources of income in Ukraine.

The EBRD also noted that the Facility will promote financial inclusion of war-affected groups in Ukraine through tailored financing for MSMEs and veterans.

The EBRD financing volume under this instrument is EUR 25 million, the project is in the final approval stage and is expected to be approved on May 5, 2026.

According to the National Bank, as of March 1 of this year, Lviv Bank ranked 24th in total assets (UAH 18.25 billion) among 58 solvent banks in Ukraine.