The Ministries of Finance of Ukraine and Germany sign a declaration to strengthen cooperation in business support

On June 11, in Berlin, Germany, Minister of Finance of Ukraine Sergii Marchenko held a working meeting with German Minister of Finance Christian Lindner. The parties signed a declaration that will contribute to the further capacity building and corporate reform of the Business Development Fund.

The Ministers signed a Joint Declaration of Intent on Capacity Development Support for Institutional Development Coordinated Through the German Development Bank KfW. The Declaration envisages support to the Ministry of Finance of Ukraine in terms of supervision and coordination of the national institutions for development and development assistance, further development of the institutional capacity of the Ministry of Finance of Ukraine with a particular focus on internal procedures and systems for strategic analysis and information management. It also provides advisory support to the Business Development Fund in the process of its institutional reform.

The Business Development Fund is a critical institution supporting micro, small and medium-sized enterprises in Ukraine. The total business support provided by all financial instruments of the BDF amounts to about UAH 321 billion, or EUR 7.7 billion (as of January 1, 2024). 

"Supporting small and medium-sized enterprises is one of the priorities of the Government of Ukraine and is carried out through the state program "Affordable Loans 5-7-9%". Expert and financial support from KfW allows us to continue providing Ukrainian businesses with affordable financing, which contributes to the economic recovery in the context of the russian full-scale war", said Minister of Finance of Ukraine Sergii Marchenko.

Sergii Marchenko also noted the key role of Germany and the personal efforts of Christian Lindner in supporting Ukraine's resistance to russia's full-scale aggression. Since February 24, 2022, Germany has provided Ukraine with budgetary financing of more than EUR 1.5 billion, 80% of which are grants. This was a significant contribution to supporting Ukraine's macro-financial stability.

Christian Lindner reaffirmed Germany's commitment to supporting Ukraine, particularly in its recovery process. Thanks to the signed agreement, cooperation between Ukraine and Germany is getting a new boost, which will help strengthen Ukraine's institutional capacities.