For the first time, Ukraine has an integrated economic development plan with a medium-term horizon, a clear structure, and defined funding. The Ukraine Facility includes a tool for attracting investment – the Ukraine Investment Framework “Pillar 2”. This is a tool that will facilitate the involvement of the private sector in the development of the Ukrainian economy, in particular, opening up additional opportunities for cities and communities.

In 2024, €1.5 billion will be allocated to replenish the programs. In particular, 70% is planned to be allocated to support the small and medium-sized business sector. These funds will enable international financial institutions and Ukrainian banks to reduce the cost of collateral for businesses and issue larger loans.

In total, €7 billion in financing is intended for four years and is aimed at expanding existing projects of European organizations in Ukraine under the Pillar 2 program. This is mainly investment support for private, municipal, and public projects.

International organizations operating in Ukraine, such as KfW, will be involved in the implementation of the Ukraine Investment Framework “Pillar 2”. It is also possible to cooperate with Ukrainian banks that have programs with international financial organizations to attract additional credit resources.

The Ukraine Facility focuses on seven sectors that need banking support: energy, defense, agriculture, IT, transportation, critical materials, and manufacturing.

Source: information for this article was taken from open online sources