Starting March 1, the state program "Affordable Loans at 5-7-9%" will include an additional option - credit guarantees, thereby allowing to solve a problem of the absence or lack of collateral the borrower should have.
"By launching the second component of the Affordable Loans at 5-7-9% program, we are actually unlocking the affordable lending tool for those entrepreneurs to whom banks have not been paid attention before. It concerns entrepreneurs who decided to build a business up from scratch and beyond the idea they have neither acceptable collateral nor track record, and this is crucial as the program must be available to as many entrepreneurs as possible. Definitely, if necessary, the operating business will also be eligible to obtain a partial credit guarantee that will cover up to 50% of his/her loan under the Affordable Loans at 5-7-9% program ", said the director of the Office of international financial cooperation projects administration within the Ministry of Finance Ruslan Gashev.
As of February 26, 2020, the Entrepreneurship Development Fund, which manages the Affordable Loans at 5-7-9% program, has approved the draft Partial Credit Guarantee Agreement with all participating authorized banks (JSC "Ukreximbank", JSC "Privatbank", JSC " Sberbank ", "Ukrgasbank "). In the near future, the deals are scheduled to be signed in order to officially introduce a loan guarantee mechanism within the Program starting March 1, 2020.
One of the banks has already signed an agreement with the Fund to allow customers to take advantage of this option from March 1, while other banks are next in turn. Soon the opportunity to get credit guarantees will be available to everyone!
Read more about the Affordable Loans at 5-7-9% program at https://5-7-9.gov.ua/