Oschadbank and European Fund for Southeast Europe (EFSE) join forces to support MSMEs in Ukraine

EFSE with its Ukraine Sub-Fund (USF) started a new partnership with Oschadbank, one of the largest and most important lenders to Ukraine’s economy. This collaboration aims to strengthen access to finance for micro, small, and medium enterprises (MSMEs), particularly those operating in vulnerable regions and/or owned or run by socially vulnerable economic groups. The Fund has committed EUR 20 million in a long-term local currency loan to Oschadbank along with a dedicated grant component for end-borrowers that will amplify the financing support for MSMEs.

The new partnership was confirmed at the EFSE USF’s signing ceremony at the event entitled: “Unlocking Potential: Charting Pathways for Lending Recovery in Ukraine” in Chișinău Moldova, on 17 June 2025.

Since the outbreak of the war in Ukraine, Oschadbank has been a key lender to businesses and individuals. It is always the first to resume operations in liberated territories and a frontrunner in implementing wartime state initiatives and programs. This highlights the Bank’s crucial role in supporting the Ukrainian economy and people.

"Our partnership with Oschadbank exemplifies our commitment to empowering MSMEs in Ukraine. By providing essential financial resources, we aim to create opportunities for businesses to grow and contribute to sustainable development, particularly in vulnerable regions," said Jasminka Begert, Portfolio Manager EFSE at Finance in Motion.

"The signing of the agreement with the European Fund for Southeast Europe is a strategically important step for Oschad, which provides the bank with new opportunities to support the Ukrainian economy. We receive a long-term financing instrument in hryvnia for a period of 5 years; such opportunities were practically absent in Ukraine. The synthetic loan of EUR 20 million in equivalent will allow us to significantly expand our support for micro, small, and medium-sized enterprises. It is especially important that 10% of the loan amount will be a grant component, which will allow us to offer entrepreneurs more affordable lending terms," emphasized Sergii Naumov, Chairman of the Management Board of Oschadbank.

"This agreement opens up new opportunities to increase the bank's support for small and medium-sized businesses in Ukraine. The EUR 2 million grant component of the program will become a powerful tool to help entrepreneurs, as it will actually compensate for part of the interest rate. In addition to financing, we also have the opportunity to receive technical assistance facilitated by the EFSE, in particular in implementing special lending programs for women entrepreneurs and veterans. The Fund is ready to co-finance such initiatives, and this will allow us not only to financially support businesses but also to develop inclusive financial products for the most vulnerable categories of entrepreneurs," comments Natalia Butkova-Vitvitska, Oschadbank Board Member in charge of MSMEs.

About EFSE

An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the European Eastern Neighborhood Region. EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors. Finance in Motion GmbH, Germany, serves as EFSE’s Portfolio Manager and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.

For more information on the European Fund for Southeast Europe, please visit: www.efse.lu 

About Finance in Motion

Finance in Motion structures, manages, and advises almost €4 billion across 10 funds, all classified as SFDR Article 9. These private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building. Founded in Germany, with local expertise from Latin America to Eastern Europe, it has been investing in emerging markets for over 20 years.

For more information, please visit: www.finance-in-motion-com  

About Oschadbank 

Oschadbank is a leading universal state-owned bank with the most extensive network (about 1,150 stationary and 10 mobile branches), serving about 6 million customers throughout the government-controlled territory of Ukraine. The bank provides a full range of banking services for individuals, businesses, and large companies. Oschad actively supports the development of MSMEs, which are key to the recovery of the Ukrainian economy in wartime, through comprehensive solutions: lending, guarantee mechanisms, and grant programs from international partners (EBRD, GIZ, EIB) and the state.