The loan refinances the funds issued by the Ukrainian government to support small and medium-sized enterprises. This will provide liquidity to the Ukrainian budget. It is urgently needed as the country is currently unable to refinance itself in the international capital markets. The loan will be disbursed shortly.
"The funds represent direct support for the Ukrainian government to cushion the consequences of Russia's ongoing war against Ukraine," says Christiane Laibach, Member of the Executive Board responsible for international financing at KfW Group.
The EUR 150 million loan is the last tranche of the German government's untied financial loan for Ukraine totalling EUR 500 million from 2015. The first two tranches were used in recent years for financing to strengthen Ukraine's financial system and energy supply.