Ministry of Finance expands state guarantees programme to encourage banks to lend more actively to entrepreneurs

The Cabinet of Ministers of Ukraine has adopted the resolution “On the Provision of State Guarantees on a Portfolio Basis in 2025”, developed by the Ministry of Finance. The document provides for the granting of state guarantees amounting to nearly UAH 15 billion for 17 banks that have successfully passed the selection.

“State guarantees on a portfolio basis are a tool to support micro-, small and medium-sized businesses, which enables entrepreneurs to obtain loans on more favourable terms. The state assumes partial liability for the loan portfolio, which encourages banks to lend more actively to entrepreneurs even in the difficult conditions of wartime,” noted Minister of Finance of Ukraine Sergii Marchenko.

The maximum volume of state guarantees will amount to UAH 14.99 billion, distributed among 17 banks, namely: JSC Oschadbank, JSC Ukreximbank, JSB Ukrgasbank, JSC CB PrivatBank, JSC PUMB, JSB Pivdenny, JSC ProCredit Bank, JSC TASCOMBANK, JSC Bank Credit Dnipro, PJSC MTB Bank, JSC Poltava-Bank, JSC RADABANK, JSC Piraeus Bank ICB, JSC Creditwest Bank, JSC Altbank, JSC VST Bank, JSC A-Bank.

The draft resolution empowers the Ministry of Finance to enter into the relevant transactions with the programme’s participating banks.

Since the introduction of the state guarantees instrument on a portfolio basis from December 2020, 50,593 loans have been issued for a total amount of UAH 163.5 billion. In September, entrepreneurs received 506 loans for over UAH 1.7 billion, with the state-guaranteed portion of the principal debt obligations amounting to UAH 0.9 billion.