The Government encourages entrepreneurs and local authorities to join programmes to support business and the population. This was stated by Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, during a meeting with the Association of Ukrainian Cities.

“Despite the daily challenges, we must already think about future development. And your role in this is key. We have a number of programmes to support and develop business. These include eRobota, eOselia, Affordable Loans at 5-7-9%, and Industrial Parks. You can join each of them. After all, supporting entrepreneurship in the regions is an investment in the future. It means new jobs, increased taxes, and a better business climate,” said Yuliia Svyrydenko.

According to the First Deputy Prime Minister, over the past 6 months, 58% of all state budget funds have been allocated to support the security and defence sector. She emphasised that Ukraine financed the Army and the military exclusively at its own expense. The average monthly military expenditure is UAH 137 billion. And the budget receives only UAH 100 billion from the tax and customs authorities.

“Therefore, our economy must work. And it depends on both the Government and local authorities,” emphasised Yuliia Svyrydenko.

She named the creation of industrial parks as one of the effective mechanisms of decentralisation. In this way, local authorities can create a favourable business climate in their communities and regions. The creation of an industrial park can be initiated by state and local authorities, as well as by private individuals on land intended for industrial use.

“It is you, the local authorities, who can finance the connection of the infrastructure of municipally owned industrial parks. Their work will benefit business, communities and the state,” Yuliia Svyrydenko continued.

Another important area is the development of the construction industry. To this end, the Government has launched the eOselia programme of affordable housing loans.

Since its launch, 2,497 soft loans have already been issued for almost UAH 3.5 billion. In total, more than 62,000 Ukrainians have applied for a mortgage. This demonstrates the incredible faith of Ukrainians in victory, as they are ready to pay off their mortgage for up to 20 years here in Ukraine in times of war.

“On 1 August, we launched the second wave of eOselia. Now, a preferential mortgage is available to Ukrainians who do not own their own housing or have a small one. For them, the interest rate is already 7%. For privileged categories, the terms remain unchanged at 3%. This week we managed to significantly increase the funding for the programme, so we will be able to issue 10,000 housing loans by the end of the year. Once again, you, the local authorities, can be a support for the construction industry. For example, you can jointly finance the down payment of the programme participants, or contribute to the compensation of part of the loan or part of the interest rate. This is already working in some regions,” explained Yuliia Svyrydenko.

For example, the Zakarpattia regional military administration (RMA) compensates the interest rate for the Armed Forces of Ukraine’s contract service members. Mykolaiv RMA partially reimburses mortgage payments to the military of the Armed Forces of Ukraine who were in captivity. The Chernivtsi RMA compensates part of the interest rate on mortgages to military, security forces, war veterans and combatants, people with war-related disabilities and internally displaced persons.

To introduce the compensation programme in their region, local authorities should contact Ukrfinzhytlo.

“Supporting business is primarily an investment in our future. Personal income taxes have already become the main source of revenue for local authorities. Tax revenues to the state budget have reached the pre-war level and totalled UAH 600 billion over the past six months. This is 20% more than last year,” concluded Yuliia Svyrydenko.