Over the first month of implementation of the Economic Stimulus Program called to overcome the effects of COVID-19, aimed to restore the sound economy within the country in all areas, a number of top priority steps have been taken.
Prime Minister of Ukraine Denys Shmyhal stated in his statement during the international virtual roundtable "Ukraine Reforms: What Next?" organized by Chatham House.
In particular, the PM voiced the most important areas of the Program that are already being implemented. Among those are as follows:
Extending the program "Affordable Loans at 5-7-9 percent"
After recent changes were included by the Government to the program of available loans at 5-7-9%, the number of loans and their volume has actually doubled. As of July 6, the total amount of loans issued under the program amounted to UAH 1.1 billion. At that, more than half of this amount is loans for investment business development. Another half is refinancing loans at actually 0%. More and more banks are joining the program and now there are 16 of those.
A new tool for obtaining a loan for small and medium-sized businesses with a partial state guarantee
The Government has approved bills on portfolio guarantees for business loans, which provide small and medium-sized businesses that have suffered financial losses as a result of the COVID-19 pandemic, access to financial resources by obtaining loans with a partial state guarantee. Ukrainian entrepreneurs will be able to get loans in fact at 0%, which is rather critical for the resumption of enterprises’ activities. For this purpose, the state guarantees 80% of the body of the loan to the bank. The bills are currently being considered by the Verkhovna Rada Committees and we believe those draft laws will be considered as soon as possible.
Due to the implementation of projects of the Great Construction program as of June, there have been additionally created more than 10,000 jobs in the field of road construction. Moreover, thanks to the Government's partial unemployment program, 241,000 jobs were saved among small and medium-sized businesses. It is worth mentioning the work of the State Employment Service, which in recent months has managed to employ almost 160,000 citizens.
Overcoming the energy crisis
The Government has taken a number of important steps to curb the energy crisis and signed a memorandum with renewable energy producers (RES), which set out the principles for restructuring green tariffs and limiting the timing of the putting in exploitation of new facilities at a green tariff. The signing of the Memorandum helped to ease tensions and stabilize the situation on the electricity market. In addition, under the Government's decisions, it was possible to launch the financial recovery of NNEGC Energoatom, which began selling the generated electricity on the market of bilateral agreements.
The Economic Stimulus Program to respond to the aftereffects of the COVID-19 pandemic provides a detailed bailout plan for all sectors of the economy. The document comprises a number of short-term and long-term assistance mechanisms. The final and adjusted document was published on the website of the Government portal. The program has already received positive feedback from relevant experts and business representatives.