The Government Expanded the Range of Potential Creditor Banks which will be Selected for Providing Portfolio Guarantees

On December 21, 2020, the resolution "On Amendments to the Procedure for Providing State Guarantees on a Portfolio Basis in 2020" was approved at the Government meeting, which was developed by the Ministry of Finance of Ukraine.

According to the adopted resolution, the Procedure for providing state guarantees on a portfolio basis in 2020 will simplify the access of potential creditor banks that can participate in the selection to obtain a partial state guarantee of obligations under the portfolio of SMEs loans.

The Procedure will be amended as follows:

• restrictions on the existence of at least 500 credit agreements in the portfolio of potential creditor banks have been lifted;
• restrictions on the requirement for the creditor banks to obtain audit reports solely without comments from the auditor removed;
• the procedure for forming a loan portfolio is simplified and reduced in time due to the exclusion of the requirement to approve the registration of loans by the guarantor;
• the deadline for submission of applications for participation in the program by creditor banks is extended;
• the amount of the agent's fee is reduced at the stage of preparation of documents, while the creditor banks have not yet provided loans and have no sources to reimburse their expenses.

It is planned that the implementation of this project will increase the number of potential creditors, increasing competition between them, which will have a positive impact on the implementation of the program in general and on the cost of loans for SMEs in particular.