Ukraine's Cabinet launches loan program at low rates for businesses (Video)

Ukrainian Prime Minister Oleksiy Honcharuk says the Cabinet has announced the launch of a program under which affordable loans will be provided to businesses at a rate of 5%, 7% or 9% with partial reimbursement by the government of spending on the interest rate.

"The program 'Affordable Loans: 5-7-9%' has been launched today. It means affordable loans for entrepreneurs to start their businesses," he said while presenting the program on February 3.

According to Honcharuk, the program is designed for entrepreneurs who are willing to start a business and create jobs.

"We are sure that as early as this year tens of thousands of Ukrainians will be able to take advantage of the program by borrowing a loan from one of the [authorized] banks," he added.

The official says four state-run banks have joined the program. Among them are Oschadbank, PrivatBank, and Ukrgasbank.

In turn, Ukrainian Finance Minister Oksana Markarova said the government would help entrepreneurs to finalize their applications free of charge if a bank does not accept such documents.

She expects the share of positive decisions by banks will be high, but noted that certain applications might be rejected.

"The refusal may be not a refusal as such, but it may imply an additional service. The state will help [entrepreneurs] to draft documents for free to return to the next stage and get 'yes' on an application for a loan," the minister said.

Read alsoPrivatBank starts accepting applications from small-sized enterprises for low-rate loans

Markarova also added that the government was already looking for resources to extend the program, expanding its scope.

Deputy Minister of Economic Development, Trade, and Agriculture Dmytro Romanovych added that the program would allow the issue of about 50,000 affordable loans to entrepreneurs.

"The new program, according to our estimates, will allow us to provide approximately 50,000 loans to entrepreneurs," he said.

At the same time, the official noted it would be possible to open a new market for banks that almost did not lend funds to entrepreneurs.