• Українською
  • Government approves bills to stimulate the economy and promote businesses
    Communications Department of the Secretariat of the CMU, posted 03 June 2020 14:27

    At a meeting on Wednesday, June 3, the Cabinet of Ministers of Ukraine has endorsed a number of documents designed to spur the economic development and support micro, small and medium-sized businesses.

    Opening the Government meeting, Prime Minister Denys Shmyhal announced that the Government's Action Program had been worked out over the past week. "Together with the Сommittees of the Verkhovna Rada, we have significantly improved this document. Added it with clear calculations, regulatory framework, those responsible. This allowed us to synchronize our vision on many different and often controversial issues. However, in my opinion, the most essential is to ensure the implementation of the things contained in the program. Because too often we could have seen in the documents the forecast for a 40% GDP growth, and in real life, we would have recorded a decline in both industry and the economy as a whole," urged the Prime Minister.

    Moreover, Denys Shmyhal announced that at today's sitting the Government proposes to the Verkhovna Rada to support the extremely important program "New Money". According to him, the bill provides for a loan of UAH 5 billion for micro, small and medium-sized businesses. "Ukrainian entrepreneurs will be able to get loans in fact at a 0% interest rate. To do this, the state guarantees 80% of the body of the loan to the bank," the Prime Minister explained.

    "Meanwhile, it is critical to resume the "5-7-9" program, which today has practically become a "0% interest" program and allows small and micro businesses to refinance their loans (agreements with 9 banks signed) at 0% for deferred loans for one year. This is also a rather critical relaxation for small businesses. We will further emphasize that as not everyone has heard about it. "The "5-7-9 "program has been transformed into the"0%" program for existing micro and small business loans," emphasized Denys Shmyhal.

    Moreover, the PM noted that the Government intends to "remove barriers so that more businesses could join cheap loans programs." "We will remove artificial conditions regarding the issue of collateral, the issue of cash flow, profit and the purpose of using funds. Less control and more freedom for Ukrainian businesses," the Head of Government accentuated.

    Another bill, which the Government has passed with the condition of completion within one day, will enable the country to launch a full-fledged functioning of electronic employment record books. "It means less paper, less bureaucracy, less unnecessary paperwork. Thus, there will be simplified access to information on the length of service of employees, which means that pensions will now be accrued automatically. These are the things that make life easier for ordinary citizens and businesses in particular," the Prime Minister stressed.

    Apart from that, Denys Shmyhal presented two Government Resolutions that would promote greater transparency, convenience and speed in the field of freight transport and land relations: “The first Resolution is a pilot project stipulating for the opportunity to obtain permits for international freight transport in e-form. This is part of our program to expand the number of electronic services. In practice, this will mean less of a subjective factor, less of contact between the official and the business, and consequently an improvement in the quality of services and the elimination of possibilities to take bribes."

    The second Resolution, according to the Prime Minister, concerns electronic services of the State GeoCadastre (State Service of Ukraine for Geodesy, Cartography and Cadastre). This project will allow us to make the work of the State GeoCadastre more transparent and accessible for people. "We are prolonging to implement the principle of extraterritoriality in the work of the State GeoCadastre to reduce any manifestations of corruption. From now on, we propose to extend this principle of extraterritoriality to receive the service of land plot registration. It implies that the citizen applies for the service at the place of registration, and the application is considered in the body of another region of Ukraine (we eliminate the connection between the recipient of the service and the provider). That will from now on be done faster and in a more convenient way (electronically and within 7 days instead of 14 days). We propose to launch this pilot project on June 10, thereby disabling corruption and making the land registration service more convenient," said Denys Shmyhal.

    Government approves bills to stimulate the economy and promote businesses