Andrii Hapon took part in the conference “Finance for Business during War 2.0”

Andrii Hapon, Chairperson of the Management Board of the Business Development Fund, took part in the conference ‘Finance for Business during War 2.0’ organized by the European Business Association.

The event brought together representatives of the banking sector, business and government agencies to discuss financial solutions necessary for economic stability and recovery, particularly in frontline and war-affected regions.

Andrii Hapon noted that the boundaries between state and international support for Ukrainian business have now become somewhat blurred. For example, projects of the German Government through KfW and the World Bank, which are used to compensate for the expenses of the Ukrainian budget under the state program ‘Affordable Loans 5-7-9%’, cover 60% of all budget expenditures under the program.

One of the conditions for compensation is the implementation of environmental and social standards, which were first introduced by the Fund among banks. Currently, all 46 partner banks of the Fund have their own policies for complying with these standards when lending to businesses. As a result, the banking sector is showing even greater readiness for the European market and European funds, as each program that falls within the scope of the Ukraine Investment Facility also has such requirements.

The anti-crisis program ‘5-7-9%’ is now returning to its investment focus with an emphasis on supporting areas with high military risk, businesses affected by military aggression, energy security and, to some extent, the agricultural sector, as well as businesses led by women and internally displaced persons.

To offset market losses among small and medium-sized businesses, the BDF has launched 17 new business support programs over the three years of full-scale invasion, which are being implemented with funds from international donors.

In conclusion, Andrii Hapon noted that the Fund’s updated mandate was recently presented, which will enable it to attract even more resources to support small and medium-sized enterprises.