The Cabinet of Ministers of Ukraine has amended the Procedure for providing financial state support to business entities, which defines the parameters of the Affordable Loans at 5-7-9% programme. In particular, the maximum loan amount for working capital financing was reduced to UAH 5 million. The limits for investment purposes remain unchanged, in particular, for processing industry enterprises they amount to UAH 150 million. The relevant decision was approved at a Government meeting on 30 April 2024.

In addition, the Government has changed the lending limit for the livestock sector, increasing it to UAH 150 million.

“The state has a limited resource of cheap money to support businesses. And we want to use it as efficiently as possible. As the National Bank gradually reduces the key policy rate, working capital becomes more accessible on market terms. Accordingly, the Government is modernising the 5-7-9% programme to refocus this type of state support on investment lending. Attracting investment in the real sector is one of the key areas of the ‘Made in Ukraine’ policy,” said Deputy Minister of Economy Nadiia Bihun.

At the same time, the Government has changed the parameters of the programme that affect bank profits. The margin of banks working with borrowers under the Affordable Loans at 5-7-9% programme has been limited. This will free up UAH 3 billion and channel these funds directly to business lending.

“The Government should balance the banks’ profits to the market level and redirect the released financial resources to expand the Affordable Loans at 5-7-9% programme, i.e. to lend to businesses that are expanding their production,” Nadiia Bihun summed up.

In the context of russia’s full-scale armed aggression against Ukraine, destruction and economic decline, the Affordable Loans at 5-7-9% programme was virtually the only effective tool for financial support for small and medium-sized businesses. Last year, 90% of new business loans in the country were issued under the 5-7-9% programme. At the same time, the share of loans for investment purposes under the programme was only about 12%.