Oschadbank and the European Investment Fund (EIF) have signed a new guarantee agreement that will allow expanding lending to Ukrainian entrepreneurs. The guarantees will cover a loan portfolio of 71.4 million euros with the possibility of further increase.

This was reported on November 11 by Oschadbank's press service.

The agreement was concluded on November 10 in Lviv during a meeting of the steering committee of the Ukraine Donor Platform. The document was signed by Oschadbank Chairman of the Board Yuriy Katsion and EIB Global Director General Andrew McDowell.

The new mechanism provides for the European Investment Fund covering 70% of credit risks for loans that will be included in the guaranteed portfolio. This will allow the bank to share lending risks with an international partner and expand financing opportunities for enterprises.

The program is aimed at micro, small, and medium-sized businesses. Entrepreneurs will be able to obtain loans for implementing investment projects, developing production, and replenishing working capital for current operations.

If the pace of loan portfolio formation is sufficient, Oschadbank and the EIF may decide to increase the volume of lending covered by the guarantee to 143 million euros.

This is already the second guarantee agreement between the institutions. The first was signed in 2017. Under the previous program, the guaranteed loan portfolio volume was increased from the initial 50 million to 100 million euros.

As an example of using such a financial instrument, the bank cited the Lviv heating equipment manufacturer "KENDL GROUP UKRAINE". In 2023, the enterprise received a loan of 12 million UAH with the involvement of the EIF guarantee for the purchase of raw materials and supplies. In 2026, Oschadbank provided the company with three more loans totaling 22.35 million UAH.

At the same time, the stated 71.4 million euros is the volume of the loan portfolio, not a direct monetary contribution from the fund to the bank. The guarantee coverage also does not mean automatic approval of loans for all applicants.

Specific interest rates, loan terms, and requirements for borrowers are not specified in the announcement of the new agreement.