The state program "Affordable Loans at 5-7-9%" should be reoriented to support investment projects. This was stated by Deputy Governor of the NBU Sergiy Nikolaychuk in an interview with Forbes.ua , UNN reports.
Details
According to Nikolaychuk, the "5-7-9%" program has demonstrated its effectiveness during crises, including the pandemic and the first phase of a full-scale war, but now it poses significant financial threats to public finances.
The NBU recommends reorienting the bulk of the program's funding to investment projects instead of working capital expenditures, as is currently the case. Working capital financing should be reserved only for specific vulnerable business sectors, such as enterprises located near war zones or for critical industries, Nikolaychuk said.
The design of the program should also be calibrated in terms of the compensation received by banks. In our opinion, the program is currently subsidizing banks to a certain extent by compensating them with a fairly high interest rate
He believes that the reformatting of the 5-7-9% program will lead to a reduction in its volume to ensure compliance with the allocated budget funds. This year, UAH 18 billion is allocated for the program.
Recall
Since the beginning of the year, 4,516 entrepreneurs have taken advantage of the Affordable Loans program,receiving loans worth UAH 18 billion. Since February 2020, 83.5 thousand loans worth UAH 285.1 billion have been disbursed.