Stabilising the Ukrainian economy during the war:

KfW secures the survival of Ukrainian businesses: EUR 50 million for the private sector

• At least 400 companies have been granted access to financing to continue their business
• At least 5,000 jobs secured

On behalf of the German Federal Ministry for Economic Cooperation and Development, KfW today signed a contract with the Ukrainian Ministry of Finance to fund a grant amounting to EUR 50 million for the financing of the government's promotional programme for economic support. This will provide Ukrainian businesses with interest rate subsidies to enable them to access financing that would otherwise not be available to them due to the current high interest rates in Ukraine. This will allow companies to cover ongoing costs and make urgently needed investments to secure their economic viability. The financial contribution will potentially secure at least 5,000 jobs and safeguard the existence of at least 400 companies.

"Ukrainian businesses are suffering greatly from the consequences of the war: destroyed production facilities, high inflation and sharp declines in sales threaten the survival of many businesses. Supporting the private sector therefore remains an important task – especially in times of war. Maintaining the viability of businesses and securing jobs generates income for households and tax revenue for the state, which in turn creates a basis for the economic stabilisation of Ukraine," explained Christiane Laibach, Member of the Executive Board of KfW Group.

The promotional programme for financial support is implemented through the Ukrainian Business Development Fund. The Business Development Fund was co-founded by KfW in 1999 as a German-Ukrainian fund and is a long-standing partner of KfW.

In addition, KfW awarded the fund with a grant from the Federal Ministry for Economic Cooperation and Development in the amount of EUR 1 million for the further development of internal processes and standards. This is an important building block in strengthening the Business Development Fund for the future tasks necessary to rebuild Ukraine.

Further information on KfW Development Bank is available at:
www.kfw-entwicklungsbank.de