PM Shmyhal boasts of successful low-interest loans program for businesses

Ukrainian Prime Minister Denys Shmyhal says more than 7,500 different businesses have already received over UAH 17 billion, or US$598.6 million, within the program titled "Affordable Loans: 5%-7%-9%".

"As of now, over 7,500 businesses nationwide have received a total of more than UAH 17 billion. A mechanism of state portfolio guarantees for small- and medium-sized businesses has been introduced, where the state provides up to 80% of the loan," the press service of the President's Office quoted Shmyhal as saying on January 7.

The prime minister added that tax holidays for individual entrepreneurs of the first taxation group remain in place for the time being. Moreover, the entrepreneurs are exempted from paying a single social security tax until June.

Read alsoWorld Bank expects Ukrainian economy to grow by 3% in 2021Shmyhal stressed that the Cabinet in 2021 would continue implementing and expanding the affordable loans program.

Background

On February 3, 2020, the Ukrainian government announced the launch of the Affordable Loans: 5%-7%-9% program, evaluating its potential for 2020 at 50,000 loans.

The Cabinet of Ministers on June 17 simplified access of businesses 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.