Page 23 - Ukraine OUTLOOK 2024

businesses: loans from Ukrainian banks (amounting to $84.4bn issued since March 2022) and funding from IFIs for the private sector (totalling $5.1bn for the same period), KSE said in a report.
IFIs can also provide financing indirectly to Ukrainian businesses through lending from Ukrainian banks, as seen in the "Affordable Loans 5-7-9" programme with IFI participation. Additionally, a portion of this financing is allocated to refinancing existing loans, limiting the availability of funds for new projects.
While Ukrainian banks contribute a larger share of financing, they face limitations in providing independent, long-term financing at low rates. This limitation is crucial for the successful implementation of investment projects, particularly in the greenfield and brownfield sectors. As of September 2023, the weighted average lending rates for non-financial corporations are 16.6% (15.7% for large enterprises, 18.4% for medium enterprises and 19.9% for small enterprises), with sole proprietors facing a rate of 23%.
Historically, IFIs in Ukraine have primarily engaged with large companies from the public and private sectors, such as Ukrzaliznytsia, Naftogaz, Ukrenergo (EBRD), MHP (EBRD, DFC, IFC), InVivo (IFC), etc. They also operate through targeted support programmes based on sector or enterprise size, covering areas such as trade facilitation (EBRD, DFC, IFC), municipalities and critical infrastructure (EBRD, EIB) and SME support (EIB, DFC, IFC). However, some small and medium-sized companies, along with certain sectors, remain beyond the scope of the current IFIs programmes.
23 UKRAINE OUTLOOK 2024 www.intellinews.com