• Українською
  • Affordable Loans at 5-7-9%: 408 loan agreements to the tune of UAH 929.7 million as a week’s progress
    Ministry of Finance of Ukraine, posted 06 September 2021 12:04

    Since the start of the Program, authorized banks have issued 22,957 loans totaling UAH 60.4 billion.

    Of those:

    • UAH 21 billion were issued as refinancing of previously received loans;
    • UAH 7.2 billion – issued to entrepreneurs for investment purposes;
    • UAH 32.2 billion – as anti-crisis loans.

    During the week, the authorized banks of the state program Affordable Loans at 5-7-9% issued 408 loans totaling UAH 929.7 million.

    As of September 3, 2021, the Entrepreneurship Development Fund has concluded cooperation agreements with 37 banks.

    Besides, as part of strengthening the investment component of the 5-7-9% Program, Entrepreneurship Development Fund together with the leadership of Lviv Regional State Administration launched a joint pilot project to introduce a mechanism of additional interest compensation on investment loans of micro, small and medium enterprises in Lviv region to the level of 0% per annum.

    The relevant agreement on the start of the Pilot Project was recently signed between the Lviv Regional State Administration and the Entrepreneurship Development Fund.

    There are obvious advantages of this Pilot Project, namely:

    1. Local authorities become a direct participant in the 5-7-9% Program, introducing an additional support package for local MSMEs, taking into account the development priorities of the region.

    2. The implementation of the Pilot Project is fully synchronized with the interest compensation mechanism under the 5-7-9% Program using escrow accounts.

    3. All authorized banks, of which there are currently 37 institutions, automatically become participants in the Pilot Project.

    4. The Fund acts as a "single window" for banks and local authorities, thereby significantly reducing their administrative costs for the implementation of the Pilot Project.

    5. The Pilot Project combines funds from the state and local budgets, which increases the amount of state support for local entrepreneurs (up to 0% per annum).

    In the future, the Entrepreneurship Development Fund plans to extend the model of the Pilot Project to all regions of Ukraine.