REUTERS
The European Union jointly with the European Bank for Reconstruction and Development have put in place the SME Direct Support Facility for small and medium sized businesses in Ukraine in the framework of the Deep and Comprehensive Free Trade Area (DCFTA), the EBRD reported on its website.
The Facility supports increase of SMEs' competitiveness, ease their access to finance, helps them with new trade opportunities and compliance with new food safety, technical and quality standards, as well as with environmental protection measures, according to the EBRD.
The latest project under the EU-EBRD DCFTA SME Direct Support Facility – and first of its kind in Ukraine – is a $5 million loan to LLC "V.V. Kischenzi" (Kischenzi), a privately owned diversified agricultural producer based in the Cherkasy region of central Ukraine. Around 60% of its output is successfully exported to the European Union and other markets.
The loan will be covered by a first loss guarantee from the EU grant under the above Facility, according to the report.
By supporting this transaction the EBRD and the EU are continuing to provide more resources to support agribusiness, a key growth driver of the Ukrainian economy – and help small businesses in Ukraine unlock new opportunities available under the Deep and Comprehensive Free Trade Area, it is emphasized in the report.
Read alsoUkraine's Ukrproduct agrees with EBRD on loan restructuringAs UNIAN reported, on January 1, 2016 the EU and Ukraine started applying the DCFTA, which forms part of the Association Agreement signed in June 2014. The rest of the Association Agreement, containing political and cooperation provisions, has already been in force since November 2014.
Read alsoEBRD says Ukraine making gains as regional reform outlook brightensThe EBRD is the largest international financial investor in Ukraine. As of January 1, 2016 the Bank had a total cumulative commitment of EUR 11.9 billion in 357 projects throughout the country.