The Government Approved Providing of State Guarantees on a Portfolio Basis in 2020

On December 23, 2020, the Government approved the Resolution “On providing state guarantees on a portfolio basis in 2020", developed by the Ministry of Finance of Ukraine.

The adopted resolution was developed for providing state guarantees to creditor banks to secure partial fulfillment of debt obligations on the portfolio of loans of creditor banks, provided to business entities of micro, small and / or medium enterprises (SMEs).

The resolution introduces the provision of state guarantees to 13 selected creditor banks and establishes a maximum amount of such guarantees. It also approves a standard draft of the guarantee agreement and authorizes the Minister of Finance to conclude the relevant legal transactions.

Such guarantees will be provided in the amount, specified by the article 6-1 of the Law of Ukraine "On the State Budget of Ukraine for 2020" (up to UAH 5 billion).