On February 1, the Memorandum on strategic partnership and cooperation between the JSC “Ukrgazbank” and the German-Ukrainian Fund was signed at the Ministry of Finance with the participation of Deputy Minister of Finance Yuriy Butsa, first deputy chairman of the board of the Ukrgazbank Andriy Kravets, executive director of the German-Ukrainian Fund (GUF) Oleg Strynzha and director of KfW Ukraine Lutz Horn-Haacke.
What is it about?
The Memorandum expands cooperation between the Ukrgazbank and the German-Ukrainian Fund aimed to develop the existing and to implement new attractive loan programs for micro, small and medium-sized business in Ukraine. This is one more step to support the development of private business in Ukraine.
The Ukrgazbank is currently the most active partner of the German-Ukrainian Fund and the leader in providing loans to micro, small and medium-sized business in Ukraine under the GUF programs. Cooperation between the Ukrgazbank and the GUF started in 2012. So far, the bank has provided 274 loans totaling more than 243 million hryvnas within this cooperation program. In the end of 2016 loan contracts were signed doubling the funding for micro, small and medium-sized business in Ukraine under the GUF loan facilities.
The GUF also provides technical assistance to the Ukrgazbank advising it on the improvement of the quality of its loan solutions and business processes. Its partner and advisor was the Frankfurt School of Finance&Management which is the leading private business school in Germany.
Why is it important?
GUF programs are aimed to support the real-economy sector which is the development and employment motor of the world’s leading economies. They offer special loan terms favorable for micro, small and medium-sized business including the possibility to receive a loan to increase the working capital (for up to 3 years) as well as for investments (for up to 5 years). These funding options are crucial for business development.
“The German-Ukrainian Fund is one of the important tools for the Government of Ukraine to support small and medium-sized business. We are keen to use available resources as effectively as possible. For example, the cooperation with the Ukrgazbank will let us effectively use the resources provided by the Fund for the support of agricultural companies and energy-efficiency projects. The administration office for international financial cooperation projects which backs up the Fund activities is working to further expand the relevant project portfolio”, Deputy Minister of Finance Yuriy Butsa said.
“We highly appreciate our long-lasting cooperation with the Ukrgazbank and the GUF, and the continuing cooperation between the Ukrgazbank and the GUF is a proof for its positive results. The Ukrgazbank continuously pays attention to the development of small and medium-sized business by striving to ensure optimal working conditions in the sector which is so important for the economy of our country. And we are grateful to the Fund for this cooperation which enables us to reduce financing costs, improve the affordability of loans and poses a real contribution to the development of business in Ukraine”, first deputy chairman of the board of the Ukrgazbank Andriy Kravets said.
“The Ukrgazbank is now one of the most active partner banks of the German-Ukrainian Fund and we highly appreciate our cooperation with them. Having signed the Memorandum, the GUF is striving to expand its partnership with the Ukrgazbank as a part of new loan programs for the support of small and medium-sized business which makes it possible to increase our funding volume to the bank to 9 million Euros in the first half of 2017. We wish the Ukrgazbank success in the loan supply to small and medium-sized business which shall contribute to the resumption of bank loans in Ukraine and development of small and medium-sized business in Ukraine”, executive director of the GUF Oleg Strynzha said.
- the Ukrgazbank was founded in 1993. 94.9409% of its shares belong to the Ukrainian state. The bank belongs to top five in Ukraine by its assets. In 2016, the Ukrgazbank opted for the niche of eco-banking aimed to finance projects in the area of energy efficiency and development of “green” energies. In December 2016, the rating agency IBI-Rating confirmed the loan rating of the Ukrgazbank at uaA+ with the stable forecast. The rating of bank deposits at the Ukrgazbank was confirmed as “5 +” which means their top security.
- the German-Ukrainian Fund (GUF) is a non-commercial institution founded in 1999 by the National Bank of Ukraine, the Cabinet of Ministers of Ukraine represented by the Ministry of Finance and by the German Credit Institution for Reconstruction (KfW). The purpose of the GUF is to enhance the competitiveness of Ukrainian micro, small and medium-sized businesses by providing them loans via selected partner banks for the increase of their working capital and investments. The GUF funds are managed by the state institution “Administration Office for International Financial Cooperation Projects” at the Ministry of Finance of Ukraine.