REUTERS
The bill will help reduce interest rate for small and medium-sized businesses if loans are used efficiently.
A bill establishing the Entrepreneurship Development Fund (EDF) passed its second reading in the Verkhovna Rada of Ukraine on Tuesday.
The legislation is aimed to ensure affordable lending to small and medium-sized businesses, according to an UNIAN correspondent.
The law provides for an increase in the special budget fund by UAH 2 billion in 2020 due to early repayment of bills by the Deposit Guarantee Fund, which will be used to finance the EDF.
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Introducing the document in Parliament, MP Oleksandr Trukhin, who is also a deputy head of the budget committee, said: "Commercial or state-owned banks will choose whether or not to give loans to small and medium-sized businesses. The bill will help reduce the interest rate when credit funds are used effectively."
As UNIAN reported earlier, on December 20, 2019, the Verkhovna Rada adopted at first reading a bill that provides for an increase in allocations to the Entrepreneurship Development Fund by UAH 2 billion.
This bill was registered on December 12 and identified as "urgent" by President of Ukraine Volodymyr Zelensky.