EU program to support small-, medium-sized businesses in Donbas launched in Ukraine

Head of the German-Ukrainian Fund (GUF) Valeriy Mayboroda says the FinancEast program has been launched to support investment projects for small- and medium-sized businesses in Ukraine's Donetsk and Luhansk regions, funded by the European Union through the German Development Bank KfW in the form of a grant worth EUR 9.5 million under the EU4Business initiative.

The statement came following the signing ceremony with the participation of the Fund and its partners, including Ukraine's OTP Leasing, Oschadbank, and Ukrgasbank, which will help entrepreneurs and small-size companies to partake in the program.

According to Mayboroda, the program provides for partial compensation of costs for financing investment projects in the territory of Donetsk and Luhansk regions controlled by the Ukrainian government. At the same time, entrepreneurs shall invest 20% of funds at their own expense, while getting 80% on credit or lease.

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"From this structure, the German-Ukrainian Fund at the expense of European Union funds compensates 50% of its own contribution. The GUF takes the first step through partner banks. After that, we will compensate 50% of the loan in case of timely and full servicing within six months," Mayboroda said.

According to the program, from December 20, entrepreneurs will be able to apply to the regional offices of partner financial institutions and receive funds on lease or credit for investment projects to purchase agricultural machinery, equipment, and vehicles, for installation, construction or reconstruction of premises, and for commissioning facilities.