As of the end of June, the State Savings Bank had built a pipeline of 32 municipal projects with a total value of EUR 74 million, a member of the bank's board responsible for micro, small, and medium-sized businesses Natalia Butkova-Vitvitska said during the Ukraine Recovery Conference (URC 2026) in Gdańsk.
Of these, 26 projects are planned for small towns and villages in the small and medium-sized business segment, and another six are for large regional centers in the corporate segment.
The projects focus, in particular, on modernizing water supply and wastewater systems, upgrading public transportation and municipal infrastructure, improving the energy efficiency of buildings, restoring social facilities, and strengthening the energy resilience of communities.
According to Butkova-Vitvitska, one of the main constraints on municipal financing remains the inadequate preparation of projects. Communities need technical assistance in developing feasibility studies, conducting energy audits, assessing ESG risks, and preparing projects for bank financing.
She believes that international risk-sharing mechanisms for infrastructure and energy projects should be designed for a term of at least ten years, and financing for communities should be available for up to 20 years.
Among other necessary measures, the Oschadbank representative cited simplifying procurement procedures, expanding grant programs, providing guarantees from the government and international financial organizations, and training municipal teams.
According to the bank, about 1,000 of more than 1,400 Ukrainian municipalities are creditworthy. The total volume of municipal borrowing in recent years has reached nearly EUR 2.7 billion, of which EUR 1.1 billion came from the domestic market and over EUR 1.6 billion from international financial organizations.
Oschadbank estimates its share of the municipal lending market at approximately 39%.
According to the National Bank, as of May 1, 2026, Oschadbank, with total assets of UAH 534.47 billion, ranked second among the country's 58 solvent banks.
