The total volume of the programs amounts to $120 million: $100 million will go toward risk-sharing mechanisms for micro, small, and medium-sized enterprises (MSMEs), and $20 million will be allocated as a trade finance guarantee line.
The risk-sharing agreement will expand SME lending across various sectors, including agriculture, manufacturing, and logistics. Particular focus will be placed on women-owned businesses, which are expected to account for 35% of the portfolio. IFC will assume up to 50% of loan risks, with a maximum exposure of $50 million. Eligible borrowers are companies with fewer than 250 employees and annual revenues of up to €50 million.
The second initiative involves PrivatBank joining IFC’s Global Trade Finance Program (GTFP). Under this framework, the bank will receive a $20 million guarantee line to support Ukrainian exports and imports and enhance cooperation with international banks.
According to PrivatBank CEO Mikael Bjorknert, the partnership with IFC will “scale up lending opportunities and make financing more accessible.” Ines Rocha, IFC Regional Director for Europe, highlighted that the agreements are expected to provide new momentum for Ukrainian entrepreneurs, especially small firms and women-owned businesses. Overall, IFC’s risk-sharing program in Ukraine could unlock access to approximately $1 billion in SME lending.
Over the past eight months, PrivatBank’s business loan portfolio has grown by 40.1%. At the same time, small and microbusinesses in Ukraine face significant working capital shortages, particularly under wartime conditions. This challenge is compounded by limited access to finance, declining demand, infrastructure destruction, and disrupted logistics chains.
According to a survey by the EBRD and Advanter Group, in 2024, 63% of small and microbusinesses identified a lack of working capital as a major operational barrier. During 2022–2023, about 40% of microbusinesses were on the verge of closure due to an inability to cover operating expenses.
