Five hundred and ninety loans have been issued for a total amount of €92 million in Georgia, the Republic of Moldova and Ukraine under the DCFTA Initiative East Guarantee Facility which is implemented by the European Investment Bank (EIB) together with the European Investment Fund (EIF), and benefits from financial support from the European Union under the EU4Business Initiative.
The first newsletter on the impact of the Guarantee Facility until December 2018 said 64% of the loans issued had been in local currency, and average financing per SME was €215,000. A total of 21,700 jobs have been supported as a result of the loans.
The portfolio showed a strong focus on manufacturing, agriculture and trade, with 39% of loans going to manufacturing, 32% to SMEs in wholesale and trade, and 17% to agriculture, forestry and fishing.
Fifty-six per cent of loans were to medium-sized enterprises, 34% to small businesses, and 10% to micro-enterprises; 62% of finance covered working capital needs and 33% was for tangible assets.
Victoria Masna, Head of Investment Banking at Raiffeisen Bank Aval, which partners the EIB/EIF DCFTA project in Ukraine, said the contribution had been significant: “In just one year, over 300 companies have benefitted from improved conditions of lower collateral requirements, which we were able to offer under the umbrella of this program. This initiative has impacted thousands of lives of Ukrainian entrepreneurs, allowed them to expand and improve their business and move a step closer on their way to EU integration.”
