Oleksiy Honcharuk: In just two weeks, state-owned banks have already granted loans to the tune of UAH 27.1 million at 5%, 7% or 9% interest rate with another 2,500 applications in process

Today, February 17, the Prime Minister of Ukraine has heard a report of state-run banks on the results of the first weeks of activity under the State Program "Affordable Loans at 5-7-9%".

"In just two weeks, state-owned banks have already issued available loans at 5%, 7% or 9% to the tune of UAH 27.1 million while work on another 2,500 applications is in process. 11 commercial banks have practically completed the procedures for joining the program, so in the near future we expect a significant increase in the number of loans granted," said Oleksiy Honcharuk.

The participants of the meeting paid special attention to the additional tools under the Program - a guaranteed mechanism of loan compensation and the training contents.

"For entrepreneurs who do not have a sufficient pledge of collateral, the Government has developed a separate mechanism – loan guarantees. When a bank replaces a pledge with a special financial instrument. This is a much-needed option, especially for startups and entrepreneurs who are just starting their own businesses. This week, it is critical to complete all legal procedures so that banks can immediately adjust the operation of this tool," the Prime Minister emphasized.

The Prime Minister added that an all-Ukrainian study tour would begin this week and entrepreneurs would be able to receive free information and consultations on the State Program "Affordable Loans at 5-7-9%" as well as the opportunity to undergo comprehensive free training to improve their business competencies.

"I expect that banks will proactively inform customers about the opportunity to receive free training. Especially for those clients who have neither fully understood the mechanism of the program nor capable of drafting an efficient business plan nor have yet achieved the required level of business experience," said Oleksiy Honcharuk.

He explained that such clients would be able to take free courses to get a positive bank assessment and a credit at 5-7-9% interest rate. None should get rejected because of the poor level of training.

Background

The State Program "Affordable Loans at 5-7-9%" was initiated by the President of Ukraine and the Prime Minister of Ukraine with the aim of providing access to bank lending for Ukrainian micro and small-sized enterprises.

The objective of the program is to strengthen the competitiveness of Ukrainian micro and small-sized businesses, create new jobs, and return labor migrants.

According to preliminary estimates, the Program will help to create more than 90,000 workplaces in the first year and attract about UAH 2 billion internal investments in the Ukrainian economy (in the sphere of microbusiness).

For the 5 years of the effect of the Program, the credits granted under the program may amount to UAH 30 billion.

More information about the Program and free training is available on the Program page in Ukrainian https://5-7-9.gov.ua/