Ministry of Finance: Over the past week, entrepreneurs received 445 loans worth UAH 1.6 billion under the programme ‘Affordable Loans at 5-7-9%’

Last week, entrepreneurs received 445 concessional loans totalling UAH 1.6 billion from authorised banks under the state programme ‘Affordable Loans at 5-7-9%’, including 336 loans from public sector banks for UAH 0.8 billion.

Since the beginning of 2024, entrepreneurs have received 13,839 loans worth UAH 52.3 billion under the Programme, including 10,471 loans worth UAH 27 billion from public sector banks.

During the period of martial law in Ukraine, 57,981 loans worth UAH 229.6 billion have been granted (including 43,505 loans worth UAH 117.4 billion by public sector banks), of which as of 29 July this year:

- UAH 22.21 billion for investment purposes;

- UAH 62.7 billion for working capital financing;

- UAH 39.31 billion as loans for agricultural producers;

- UAH 18.35 billion for the processing of agricultural products;

- UAH 57.58 billion for anti-war purposes;

- UAH 15.93 billion for lending in the area of high military risk.

A total of 92,803 loan agreements worth UAH 319.2 billion have been signed since the start of the programme, including 63,981 agreements worth UAH 144 billion by public sector banks.

The programme is implemented by the Entrepreneurship Development Fund (EDF), whose sole participant is the Government of Ukraine, represented by the Ministry of Finance, which coordinates all aspects of the Fund’s activities.

To date, under the Government’s Affordable Loans at 5-7-9% programme the EDF has concluded cooperation agreements with 46 banks. The state continues to make all necessary compensation payments to businesses under the loan agreements concluded within this programme.

On 27 December last year, in order to expand the opportunities for entrepreneurs to receive state support, the Government amended the Procedures regulating the provision of financial state support under the 5-7-9% programme at the initiative of the Ministry of Finance. First of all, the restrictions on receiving state support for certain categories of enterprises affected by the hostilities have been lifted. In addition, as part of the agreements with the IMF, the amendments provide for the focus of the 5-7-9% programme exclusively on micro, small and medium-sized enterprises.

To streamline the Government’s Affordable Loans at 5-7-9% and Affordable Financial Leasing at 5-7-9% programmes under martial law, the Government adopted Resolution No. 229 “On amendments to certain resolutions of the Cabinet of Ministers of Ukraine on providing financial state support to business entities” dated 14 March 2023.

Also at the end of last year, the Affordable Factoring programme was launched, a new financial instrument under the Affordable Loans at 5-7-9% programme to provide micro, small and medium-sized enterprises with working capital.