Over US$317 mln in low-interest loans issued to Ukrainian SMEs – PM Shmyhal

Ukrainian Prime Minister Denys Shmyhal says low-interest loans provided for small- and medium-sized enterprises (SMEs) under the program titled "Affordable Loans: 5%-7%-9%" have exceeded UAH 9 billion, or US$317.6 million.

Read alsoOver 40% of small business owners fear re-entering the lockdown: EBA survey"The past month has clearly shown that the program of affordable loans for SMEs at 5%-7%-9" has succeeded. The total amount of loans has already exceeded UAH 9 billion," he wrote on Facebook on October 3.

Almost 4,000 businesses have benefited from the program, he added.

Moreover, the government envisaged UAH 12 billion (US$423.4 million) in the 2021 national budget draft for the affordable loan program.

Background

• On February 3, 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.
• In total, 18 banks joined the program.
• On September 4, 2020, the Cabinet announced that the program would apply to medium-sized businesses.
• On September 13, 2020, Ukrainian President Volodymyr Zelensky during a working trip to Odesa region said the government planned to extend the program to farmers affected by drought.