The Cabinet of Ministers of Ukraine has endorsed proposals for legislative changes that will allow providing small and medium-sized businesses that have suffered financial losses due to the COVID-19 pandemic with access to financial resources by obtaining loans with a partial state guarantee. The bill had been considered by the line committee and was finalized taking into account the proposals of MPs.
“It is the instrument of providing a state guarantee that will help partner banks of government business support programs to boldly lend to our entrepreneurs and improve access to finance for small and medium-sized businesses in Ukraine. Those are consistent steps of the authorities towards the availability of finances for entrepreneurs,” commented the Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko.
The guarantees will be provided by the Ministry of Finance to cover a credit bucket for businesses that will be issued by lending banks. After the Parliament approves the relevant amendments to the Budget Code of Ukraine and the Law of Ukraine “On the State Budget for 2020”, the Government will establish the conditions for the selection of banks and the procedure for providing such guarantees under separate decisions.
The provision of partial state guarantees on a portfolio basis is a tool to help businesses that will support the Ukrainian economy in a time of trials, to enable businesses to develop and citizens to work.