German-Ukrainian fund (hereinafter – GUF), a financial institution specializing in providing financial support to Ukrainian micro, small and medium enterprises (MSME) (hereinafter – MSMEs), marked the 15th anniversary of its foundation in April.
GUF was founded by German development bank (KfW), the National Bank of Ukraine, and the Ministry of Finance of Ukraine to strengthen the competitiveness of Ukrainian MSMEs. Operating in accordance with "second level" principle, the GUF provides financial resources to MSMEs at a reasonable price through selected partner banks. MSMEs use these loans to finance investments and working capital.
In spite of social and economic turmoil in Ukraine, GUF continues to expand lending to Ukrainian banks. In 2014, GUF is to launch a joint project with KfW to provide financial support to MSMEs. As part of this project, a line of credit worth as much as EUR 10 million in hryvnia equivalent will be offered to GUF partner banks and advisory services on how to improve MSMEs lending mechanism will be provided by an international expert.
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GUF implements various lending programs and projects to provide financial support to MSMEs, with exceptionally attractive loan products terms and conditions for banks and MSMEs. They take into account the specific needs of different industries and sectors of the economy. Only those banks that have a sound financial standing, meet acceptance criteria established by the GUF and provide loans to MSMEs are entitled to become partners with GUF and participate in the GUF programs. Apart from the provision of financial resources, the GUF provides support to its partner banks to spur the development of technology and lending procedures.
Starting from 1999, GUF has provided 161,484 micro-loans to small and medium-sized enterprises for a total of more than EUR 721.2 million. 20 Ukrainian banks have been partners with GUF over this period.
The Team for International Credit Line Management of the National Bank of Ukraine is responsible for overall and day-to-day management of GUF.
GUF invites all Ukrainian banks that are interested in providing financial resources to MSMEs for cooperation. Detailed information on terms, conditions and advantages that a partnership with GUF offers has been posted on the website of GUF www.guf.gov.ua.