KIEV, Aug. 14 (Xinhua) -- The German Investment and Development Corporation allocated 10 million U.S. dollars for small- and medium-sized enterprises (SMEs) in Ukraine, the press service of the German Embassy in Ukraine said Monday in a statement.
The fund, which was earmarked on the behalf of the German federal government, would help Ukrainian SMEs gain access to long-term financing, the statement said.
The investment is designed to spur the growth of Ukrainian enterprises, improve the quality of their business management, create new jobs and stimulate other private and institutional investments, it said.
The lion's share of the investment will be directed to support export-oriented industries, such as information technology, light manufacturing and food-related businesses.
Another part of the fund will go to companies in the e-commerce, health care and other sectors that are geared towards the domestic market.
About 2 million small- and medium-sized enterprises in Ukraine are considered the backbone of the country's economy, forming 59 percent of the gross domestic product.
Lack of resources and inappropriate management are among the main challenges for Ukrainian SMEs' development, according to local experts.
