Ukrainian banks issue US$1.1 bln in 12,500 affordable loans under state program

Ukraine's Finance Ministry says Ukrainian banks have issued 12,539 loans worth UAH 30.8 billion (US$1.1 billion) since the launch of the state-run Affordable Loans: 5%-7%-9% program.

Read alsoPM Shmyhal boasts of successful low-interest loans program for businessesSome 833 new loans totaling UAH 1.9 billion (US$68 million) were provided last week alone, the ministry's press service said on its website on April 5.

In particular, transactions on refinancing of already issued loans stood at UAH 14.206 billion (US$508.1 million) of the total amount of concluded deals, investment loans provided by authorized banks at UAH 4.69 billion (US$167.7 million), and anti-crisis loans at UAH 11.9 billion (US$425.6 million), the report said.

Background

• In February 2020, the Ukrainian government announced the launch of the Affordable Loans: 5%-7%-9% program, projecting that 50,000 loans may be issued last year.
• On June 17, 2020, the Cabinet simplified businesses' access to loans that are provided for small- and micro-sized businesses under the said program. It eased mandatory profitability requirements for existing businesses and removed restrictions on areas where the funds may be used and on the loan ceiling.
• On December 28, 2020, the Cabinet introduced changes to the Affordable Loans: 5%-7%-9% program, expanding the number of applicants who would have access to financial aid under the state program.
• As of February 24, 2021, the maximum sum of financial aid to be extended to an entrepreneur under the program was increased to EUR 400,000.