REUTERS
The relevant resolution was adopted at a government meeting on April 15.
Ukraine's Finance Minister Serhiy Marchenko says the Cabinet of Ministers has increased the maximum loan amount under the program, titled "Affordable Loans: 5%-7%-9%," from UAH 2 million (US$73,828) to UAH 3 million (US$110,742).
The relevant resolution was adopted at a government meeting on April 15, according to an UNIAN correspondent.
Marchenko says the move allows increasing up to UAH 3 million the maximum amount of loans provided to an entrepreneur or related parties.
In addition, the number of entrepreneurs who can count on support under the program is expanding – their annual revenue from any type of activities shall be up to UAH 100 million (US$3.7 million).
"The objectives [of the program] are also expanding toward debt refinancing and investment. In addition, it provides for the working capital replenishment. We give the opportunity to maximize this program and make it effective one," he added.
In turn, Ukrainian Prime Minister Denys Shmyhal has said the move will actually allow introducing a zero rate on refinanced loans for businesses to ease the burden of the crisis.
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"The Economy Ministry and the Ministry of Finance have proposed a number of programs for loan support of small- and micro-sized businesses. The programs will provide both the issuance of new loans and refinancing of existing ones with a zero interest rate and repayment of the principal of the loan in one year, that is, the so-called loan repayment holidays, which we are actually ready to provide," he said.
"The main condition is the preservation of at least 80% of jobs in small- and micro-sized businesses. This is the major requirement of the program," Shmyhal added.
As UNIAN reported earlier, the Verkhovna Rada, Ukraine's parliament, in January passed the bill establishing the Entrepreneurship Development Fund (EDF) in Ukraine, which will receive UAH 2 billion (US$73.8 million) in financing in 2020.
The fund will help implement a state support program for small- and medium-sized businesses, which will allow participants to get affordable loans at 5%, 7% or 9% to create or expand their business operations.
On February 3, the Ukrainian government announced the start of the program, titled "Affordable Loans: 5%-7%-9%," evaluating its potential for 2020 at 50,000 loans.
On March 18, the Cabinet of Ministers increased the maximum loan amount under the program from UAH 1.5 million (US$55,371) to UAH 2 million (US$73,828).