EFSE and Oschadbank enter a strategic partnership to support MSME resilience and recovery in Ukraine

Chișinău, 17 June 2025 ––The European Fund for Southeast Europe (EFSE), through its Ukraine Sub-Fund (USF), launched a new strategic partnership with Oschadbank, second largest bank and a systemically important lender to Ukraine’s economy with a demonstrated social mission.

This collaboration aims to strengthen the access to local currency finance for micro, small, and medium enterprises (MSMEs) in Ukraine, particularly those operating in regions heavily affected by the war, as well as those owned or led by vulnerable social groups, such as women and veterans. The Fund has committed EUR 20 million long-term local currency loan facility to Oschadbank, along with a dedicated grant program for MSME borrowers that aims to strengthen the solvency and continuity of local businesses amid elevated risks and uncertainties, and lay the foundation for the resilient and inclusive economic recovery.

Since the outbreak of the Russian war of aggression in Ukraine, Oschadbank has been a key lender to local businesses and individuals, as well as the first to resume operations in liberated territories, and a frontrunner in implementing wartime state programs.

The new partnership was confirmed at the signing ceremony organized as part of the one-year anniversary event marking the launch of EFSE USF - “Unlocking Potential: Charting Pathways for Lending Recovery in Ukraine” - in Chișinău, Moldova, on 17 June 2025.

"Our partnership with Oschadbank exemplifies our commitment to empowering local MSMEs – a backbone of Ukraine’s economy. By providing critically needed financial resources and support, we aim to create opportunities for businesses to not only rebuild and adapt, but to also grow and innovate amid the challenging operating environment. This contributes to an inclusive and sustainable recovery, including, in vulnerable regions. " said Jasminka Begert, EFSE Portfolio Manager 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
The European Fund for Southeast Europe (EFSE) is an impact investment fund to drive economic development and prosperity in Southeast Europe and the Caucasus. Through its two sub-funds—the Regional Sub-Fund (RSF) and the Ukraine Sub-Fund (USF)—EFSE provides tailored financial solutions to foster entrepreneurship, strengthen financial inclusion, and support local economies. EFSE was initiated in 2005 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.

 

Media Contacts:
EFSE: Nusha Westhoff
Director Marketing & Communications
Mobile: +49 69 271 035-789
press@efse.lu

Oschadbank: Nataliia Yakovetska
Head of Press Office
Mobile.: +38 067 195 25 11 
yakovetskano@oschadbank.ua