The government has modernised the “5-7-9% Affordable Loans”programme to refocus this type of state support on investment lending

The government has modernised the “5-7-9% Affordable Loans”programme to refocus this type of state support on investment lending

The Ukrainian Cabinet of Ministers has limited the margins of banks working with borrowers under the programme. This will free up UAH 3 billion for direct lending to businesses.

The maximum loan amount for working capital financing has now been reduced to UAH 5 million. However, the limits for investment purposes remain unchanged, particularly for manufacturing companies, at UAH 150 million. In addition, the government changed the credit limit for the livestock sector, raising it to UAH 150 million. 

The government’s “5-7-9% Affordable Loans” programme remains an effective tool for providing financial support to SMEs. Last year it helped to provide 90% of new business loans. However, before the modernisation, the share of loans for investment purposes under the programme was only about 12%.

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