Letters of credit (L/Cs) form part of the offering that has helped one of Ukraine's largest banks to a fivefold increase in its credit portfolio in 2021.

Megabank says the increase is largely due to its pursuit of a strategy which is seeing it specifically target small- and medium-sized enterprises (SMEs) and microbusinesses.

Increased lending

In 2021 Megabank increased its credit portfolio so that by 1 January 2022 it had reached the equivalent of US$286 million.

The bank says the equivalent of US$34 million was disbursed as loans to SMEs in 2021. Microbusiness meanwhile received loans worth US$3.4 million in 2021, which the bank says is 214 per cent more than in 2020.

Small business focus

The bank supports SMEs and micro-businesses in the agricultural, commercial and industrial sectors.

Small businesses have access to the entire range of documentary options, including L/Cs, bank guarantees and collections according to the bank.

Development bank support

In addition, SMEs can access affordable short-term unsecured loans in the form of a credit limit on a current account, loans for investment purposes, and loans under government support programmes related to the Covid-19 pandemic.

The bank's shareholders include the European Bank for Reconstruction and Development (EBRD), German development bank KfW and International Finance Corporation (IFC).

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.