The Ministry of Economy plans to transform the program “Affordable Loans 5-7-9%”, so that loans are issued to businesses for investment purposes or to businesses from the de-occupied territories. This was stated by Deputy Minister of Economy of Ukraine Nadiia Bihun.
“We are planning to make changes to the “5-7-9″ program to focus it on recycling now. That is, to make recycling the priority sector of this program,” said Bihun.
She recalled that the “Affordable Loans 5-7-9%” program was originally aimed at business enterprises, but COVID-19 broke out almost immediately, followed by a full-scale war, which required this program to save businesses.
“But now we see that we need to move away from this concept,” said Bihun.
The deputy minister explained that when there was a program where the loan rate was significantly lower than the market rate, it encouraged businesses to participate in it, and thus created a huge demand. Instead, it is the bank that decides whom to lend to – someone with a good financial standing who will definitely repay the loan, or a more risky entrepreneur. So, of course, the answer is obvious: the bank will choose the latter. And businesses that really needed help had no chance of getting financial assistance.
“That is why we are going to change the program more actively. In fact, there will be two key areas. One area is for businesses that want to develop, which will take money for investment purposes, and the second is for businesses that really need help, the de-occupied territories,” said Bihun. (Ukrinform/Business World Magazine)