The Ministry of Economy of Ukraine, together with the Ministry of Finance of Ukraine, has launched the Affordable Factoring programme. The new programme, which will operate within the framework of the popular Affordable Loans at 5-7-9% programme, will strengthen state support for Ukrainian businesses.
“The Government is constantly working to strengthen support for businesses and Ukrainian producers. This time we have moved very quickly from an idea and a decision by the Cabinet of Ministers to the launch of a new product that our entrepreneurs can use from today. With the help of the Affordable Factoring programme, small and medium-sized enterprises will be able to replenish their working capital and gain additional opportunities for development,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
The Entrepreneurship Development Fund has been appointed as the administrator of the Affordable Factoring programme and has already signed cooperation agreements with 5 partner financial institutions: OTP Bank Ukraine, TASKOMBANK, ComInBank, Globus Bank and PJSC MTB Bank. USAID’s Financial Sector Reform Activity will help raise awareness of factoring among the business community.
As a reminder, in September 2023 the Government approved the procedure for providing financial state support to business entities under factoring agreements (against an assigned right to claim for goods delivered, work performed, services rendered, etc.).
According to the procedure developed by the Ministry of Economy:
The Procedure also regulates restrictions on the interest rate, one-off and additional service charges for banks, increased (penalty) remuneration for breach of the factoring agreement by the business entity, etc., establishes criteria for entrepreneurs to apply for state aid under factoring agreements and requirements for factoring agreements.