EBRD may provide Lviv Bank with EUR 40-mln-equivalent-hryvnia loan, EUR 31.5 mln guarantees
The European Bank for Reconstruction and Development (EBRD) may provide Lviv Bank with an unsecured EUR 40-million-equivalent-hryvnia loan and guarantees for EUR 31.5 million to cover the credit risk on new loans to the Ukrainian bank for a total amount equivalent to EUR 45 million.
As noted on the EBRD website, its board of directors plans to consider the relevant projects at a meeting on October 22 of this year.
According to published materials, the loan is planned to be provided in four equal tranches of EUR 10 million each. It will consist of two components: at least 75% under the EBRD Resilience and Livelihoods Framework and up to 25% under the EU4Business-EBRD Credit Line with incentives to finance long-term capital investments of MSMEs.
As for the guarantee project, unlike most similar projects with larger banks, it is about covering 70% of the risk, and not 50%, as is usual. It is noted that the mechanism will include two sub-limits with a covered portfolio: EUR 36 million under the Resilience and Livelihoods Framework and EUR 9 million under the EU4Business-EBRD Credit Line with incentives.
The EBRD indicates that Bank Lviv is a regional bank focused on MSMEs operating in western Ukraine, with total assets of EUR 333 million (0.5% of the market, 23rd place among 60 banks) and a loan portfolio (mainly MSMEs) of approximately EUR 212 million as of the end of Q2 2025 (1.2% of the market). Bank Lviv has its head office in Lviv and 20 branches.