Government Risk Coverage Platform Will Enable Scaling Up of Business Lending in Wartime, Says Volodymyr Lavrenchuk

Developing a government platform for insurance and coverage of war-related risks is a critical prerequisite for the recovery of the Ukrainian economy and the further expansion of bank lending. This was stated by Volodymyr Lavrenchuk, Chairman of the Supervisory Board of Oschadbank, on the Radio NV podcast, emphasizing that individual instruments alone are no longer capable of meeting market needs amid constant enemy attacks.

According to Lavrenchuk, banks and the government are currently seeking solutions that will allow businesses to restore destroyed or damaged assets. If businesses that have established markets and expertise halt their development, the economy will inevitably contract. That is precisely why Ukraine needs a large-scale government mechanism that will serve entire sectors of the economy, not just individual businesses.

“Companies that have suffered damage but have contracts and experience need only the leverage to recover. The government should provide this mechanism, and banks should contribute their own financing. Such a platform, which is already being discussed at the level of the government, the Ministry of Economy, the NBU, and business associations, will give our joint efforts the necessary scale,” emphasized Volodymyr Lavrenchuk.

The need for a systemic solution is also evidenced by the current lending structure. As the largest lender to the Ukrainian economy, Oschadbank is already shouldering the bulk of the burden in supporting strategic sectors: currently, the bank provides about 30% of overall financing for the defense-industrial complex and is a key lender to Ukraine’s energy sector.

A clear illustration of the demand for military threat insurance is the fact that every other Oschadbank loan to small businesses is issued using risk-sharing programs in collaboration with international partners (EBRD and EIB). This has already enabled 10,000 enterprises to secure financing with potential compensation for losses in the event of force majeure. A portfolio of investment projects for small and medium-sized businesses totaling UAH 3 billion has been formed.

Volodymyr Lavrenchuk highlighted that thanks to the systemic management developed over the past decades and rapid digitalization, where 95% of banking transactions are already cashless, the financial system remains stable and resilient. However, to shift from simple adaptation to the country’s widespread recovery, a new, qualitative step is needed in the form of nationwide coverage of war-related risks.

The full interview is available at https://biz.nv.ua/ukr/finance/oshchadbank-i-viyna-v-ukrajini-yak-staliy-rozvitok-i-sistemne-upravlyannya-dopomagayut-unikati-pomilok-50640354.html

Video of the broadcast is available at https://www.youtube.com/watch?v=wbI-USBeH2o