The European Bank for Reconstruction and Development (EBRD) has launched a new Enterprise Security Enhancement (ESE) initiative in Ukraine aimed at strengthening the resilience of businesses and households affected by the ongoing war. The program is being implemented in partnership with leading Ukrainian banks and is designed to address critical financing challenges caused by widespread war-related damage.
The initiative introduces a donor-supported mechanism that allows participating banks to offer partial debt relief to borrowers whose assets financed under EBRD-backed loans have suffered verified war damage. This approach helps reduce the financial burden on affected clients while ensuring that businesses can continue operating and reinvesting in recovery instead of being fully liable for destroyed assets.
Under the scheme, the EBRD compensates partner banks for credit losses arising from eligible claims, enabling them to continue lending without absorbing the full risk of war-related destruction. The mechanism is specifically focused on capital expenditure loans tied to fixed assets, ensuring targeted support for productive investments rather than general operating costs.
Each claim is subject to strict verification by partner banks in coordination with the EBRD to ensure that only directly war-damaged assets are eligible. Safeguards are included to prevent double compensation from other insurance or donor mechanisms, maintaining financial discipline and accountability within the program.
Overall, the Enterprise Security Enhancement initiative is intended to sustain business activity in Ukraine under extreme conditions, preserve investment incentives, and support long-term economic resilience. It forms part of the EBRD’s broader effort to stabilize Ukraine’s private sector and maintain financial flows during wartime.
