Ukrainian businesses can now get grants from Germany via Oshchadbank

28 February, 11:29 AM
Oshchadbank (Photo:Ощадбанк via Facebook)

Oshchadbank (Photo:Ощадбанк via Facebook)

The State Savings Bank of Ukraine, or Oschadbank, has launched a program of sub-grants from Germany for micro-, small- and medium-sized enterprises, the bank announced on its site on Feb. 24.

The “Access to Finance and Support of Sustainability of Micro-, Small- and Medium-sized Enterprises” (MSMEs) program is funding by the German government and implemented by German state company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with Deutsche Sparkassenstiftung für international Kooperation (DSIK) and the Foundation for Enterprise Development, Oschadbank's announcement reads.

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"Germany provides up to 30% of the funding in the form of grant support,” Oschadbank stated said.

“Projects worth up to EUR 240,000 ($255,000), VAT excluded, with a targeted use of funds for the purchase, modernization and reconstruction of fixed assets, as well as replenishment of working capital, are considered for participation in the program. The program is open to any legal non-state entity registered in Ukraine.”

The program also aims to enhance business potential and the development of business skills of MSMEs via support of the Ukrainian association of management consultants (CMC-Ukraine), the project beneficiaries.

The consultations will be provided in a wide range of topics, including market expansion within the country and beyond it, strategy development and adaptation, operational and production efficiency, digital transformation, and business relocation.

Grant Support requests will be accepted until April 25, 2023.

"Over 100 of Ukrainian entities will benefit from this grant support thanks to our European partners, in particular those from Germany,” said Natalia Butkova-Vitvitska, Oschadbank Board Member in charge of MSMEs.

“We offer effective support for sustainable business development on reasonable terms. We have a strategically important goal: to ensure business functioning that will allow the country’s economy to recover.”

The business lending is carried out under the Memorandum of Cooperation in Financing MSMEs, within the framework of an international technical assistance program called
Application and Implementation of the EU-Ukraine Association Agreement in the field of trade.”

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