EFSE hosts the first Ukraine Sub-Fund event on lending recovery in Ukraine

Chișinău, 17 June 2025 ––The European Fund for Southeast Europe (EFSE) hosted an event titled "Unlocking Potential: Charting Pathways for Lending Recovery in Ukraine" in Chișinău, to honor the one-year anniversary of the launch of EFSE’s dedicated Ukraine Sub-Fund (USF).  

EFSE launched the Ukraine Sub-Fund (USF) in 2024 in response to the Russian invasion, aiming to support Ukraine’s recovery through blended finance. Leveraging EFSE’s local expertise, USF offers tailored financing and grants for MSMEs, backed by around €100 million in first-loss capital to attract further investment.

The event brought together more than 50 key participants from Ukrainian financial institutions, the National Bank of Ukraine, the European Commission, and development banks to encourage dialogue and strengthen collective efforts towards supporting the resilience and the recovery of Ukraine’s micro, small, and medium enterprises (MSMEs).

Through panel discussions and keynote interviews the participants examined obstacles to financial access faced by the local private sector, particularly MSMEs, which form the backbone of Ukraine’s economy. The participants discussed strategies and instruments for unlocking and scaling lending for MSMEs – such as risk-sharing solutions and grant-based incentives - mobilizing public and private funds in times of crisis, balancing financial stability with lending recovery, and delivering smarter, faster action on the ground. The participants shared success stories and lessons learnt as the Russian War of Aggression against Ukraine enters the fourth year.  

More than just a forum for ideas, the event aimed to drive the conversation and foster practical partnerships among key stakeholders for the common goal: support Ukraine’s sustainable and inclusive recovery by financing and empowering local businesses. 
 

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