The Cabinet of Ministers has amended the Procedure for Providing Financial State Support to Business Entities under the Affordable Loans 5-7-9% Program, in particular, the maximum amount of lending for working capital financing was reduced to UAH 5 million. This is reported on the Government portal, UNN reports .
Details
The Cabinet of Ministers of Ukraine has amended the Procedure for Providing Financial State Support to Business Entities, which defines the parameters of the Affordable Loans 5-7-9% program. In particular, the maximum loan amount for working capital financing was reduced to UAH 5 million. The limits for investment purposes remain unchanged, in particular, for processing industry enterprises they amount to UAH 150 million.
According to Deputy Minister of Economy Nadiya Bihun, the state has a limited resource of cheap money to support business, and therefore the government is striving to use it as efficiently as possible.
As the National Bank gradually reduces its key policy rate, working capital becomes more readily available on market terms. Accordingly, the Government is modernizing the "5-7-9%" program to refocus this type of state support on investment lending. Attracting investment in the real sector is one of the key areas of the "Made in Ukraine.
The government also changed the program parameters that affect banks' profits. The margin of banks working with borrowers under the program "Affordable Loans 5-7-9%" was limited. This will free up UAH 3 billion and direct these funds directly to business lending.
Recall
Farms that received loans by 2022 and are located in the temporarily occupied territories or where active hostilities are taking place can postpone their repayment until December 31, 2025.