The Government supported the proposals of the Ministry of Finance to change the terms of the program "Affordable loans 5-7-9%"

The Government of Ukraine supported the draft resolution "On Amendments to the Procedure for providing state support to micro-entrepreneurship and small business", submitted by the Ministry of Finance. The relevant decision was made today at a government meeting.

"During the implementation of the program "Affordable Loans "5-7-9%" by the Ministry of Finance and the Ministry for Development of Economy, Trade and Agriculture of Ukraine, in cooperation with authorized banks and business representatives, there have been identified a number of issues that need additional resolution by amending the Procedure of the implementation. We are convinced that the changes will allow us to expand access to financial state support for businesses and increase the efficiency of the Program," - explains Dmytro Oliynyk, the Director of the Financial Policy Department of the Ministry of Finance.

In particular, it was decided:

• to mitigate the requirements for mandatory profitability of existing businesses in the previous tax period;

• to remove restrictions on the using of funds, received by business entities to finance working capital;

• to prohibit the using of a bank deposit as collateral for a loan under the program "Affordable loans 5-7-9%";

• to remove restrictions on the maximum loan amount under the Program;

• to bring the formula for calculating the base interest rate in line with the level of operating costs of banks, which allows them to ensure the implementation of the program "Affordable loans" 5-7-9%.

Importantly, micro and small businesses will be able to apply for loans under the new rules immediately after the Fund for Entrepreneurship Development Fund will make appropriate changes to the Program "Affordable Loans 5-7-9" and will renew the agreements with authorized banks.

It shouldl be recalled that the Entrepreneurship Development Fund has already concluded the cooperation agreements with 16 banks: “Oschadbank” JSC, “Ukrgasbank” JSC, “PrivatBank” JSCB, “Ukreximbank” JSC, “Bank Lviv” JSCB, PJSC "FUIB", “BANK ALLIANCE” JSC, “KREDOBANK” JSC, PJSC “VOSTOK BANK”, “Raiffeisen Bank Aval”, JSC “TASKOMBANK”, JSC “Alfa-Bank”, JSC “CB GLOBUS”, JSC “MEGABANK”, JSC “POLYCOMBANK”, JSC “CREDIT AGRICOLE BANK”.

As of June, 15 of this year, 639 loan agreements totaling UAH 404.8 million have already been concluded within the “Affordable Loans 5-7-9%” Program.