The government continues to support small and medium-sized businesses. On April 29, 2022, The Cabinet of Ministers of Ukraine adopted a resolution “On providing state guarantees on a portfolio basis in 2022” in order to continue supporting micro, small and medium enterprises (SMEs) and increase state guarantees by UAH 1.4 billion. Thus, taking into account the previous decisions of the Government adopted this year, the total amount of state guarantees provided in 2022 on the portfolio basis amounts to UAH 20 billion.
▪ Government guarantees are provided to ensure partial fulfillment of debt obligations under the portfolio of loans of creditor banks provided to micro, small and medium-sized businesses. The government has established the possibility of providing state guarantees to 17 creditor banks that have been selected for a partial state guarantee.
The advantages for SMEs from portfolio guarantees are:
➖ obtaining a loan with partial collateral up to 60% of the loan amount;
➖ maximum rate limit – the loan rate cannot exceed UIRD + 6%.
▪ Micro enterprises received a greater amount of loans, while small enterprises are leading by the volume of the loans granted. The program is most in demand in Kyiv city, Dnipropetrovsk and Lviv regions. The main objective of the loan is to provide working capital.
📌 Micro, small and medium businesses are vital components for the national economy. In Ukraine, the share of SMEs in GDP is estimated at about 50-55%, while this sector provides about 60% of employment. That is why supporting SMEs is an extremely important step to ensure the stability of the economy.
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