REUTERS
Some 64% of Ukrainian companies and 74% of domestic entrepreneurs use the bank's services.
Ukraine's largest state-owned PrivatBank has started accepting applications from entrepreneurs and small-sized enterprises for low-rate loans under a government incentive program for businesses, titled "Affordable Loans: 5-7-9%."
"It is enough to have an account with PrivatBank and submit an application via the designated page on the bank's website, namely privatbank.ua/business/5-7-9 to participate in the program," the bank's press service said on January 27.
Read alsoUkraine's Cabinet to launch loan program at low rates for businesses
The program allows entrepreneurs to borrow up to UAH 1.5 million (about US$61,000) for their business development for up to five years. The state will refund part of the interest rate depending on the number of created jobs with the possibility of a quarterly rate reduction.
Noteworthy, the program is designed to develop small- and medium-sized enterprises, whose number of employees does not exceed 50 people (taking into account a group of affiliated entities) and their annual revenue is not higher than UAH 50 million (US$2 million). The bank also plans to extend the program to develop startups.
Loans under the program may be extended to such enterprises for the purchase and/or upgrading of their fixed assets, as well as real estate and vehicles to be used for commercial and industrial purposes, as well as for construction, reconstruction, repairs in the premises where their main economic activity is carried out (except for office premises).
PrivatBank says 64% of Ukrainian companies and 74% of domestic entrepreneurs use its services, according to a survey conducted by GfK Ukraine in 2019, the press service added.
As UNIAN reported earlier, a bill establishing the Entrepreneurship Development Fund (EDF) passed its second reading in the Verkhovna Rada, Ukraine's parliament, on January 14.
The document provides for an increase in the national budget's special fund by UAH 2 billion (US$81.3 million) in 2020 thanks to early redemption of bills by the Deposit Guarantee Fund, which will be used to finance the EDF.
On January 24, the Cabinet of Ministers adopted a resolution to launch a program under which affordable loans would be provided to businesses at a rate of 5%, 7% or 9% per annum under the EDF starting from February 1, 2020.