As part of the scaling up of the business support package, the Cabinet of Ministers of Ukraine has expanded the pilot project of financial support for business to attract loans for the construction of its own generation. In particular, the program mechanism has been expanded to projects for the restoration of damaged or destroyed fuel and warehouse logistics facilities, enterprises of the processing industry, wholesale and retail trade.
“Given the intensification of enemy shelling and large-scale systemic losses of business, we are expanding state support to ensure the energy sustainability of entrepreneurs. After all, now more than ever it is important to support business, preserve supply chains and logistics, and ensure the population’s access to goods. To this end, the Government will provide preferential loans for the creation of a secure and decentralized fuel storage model – through the construction or modernization of underground storage capacities. This solution is one of several within the framework of a large-scale support package that we promptly formed at the request of business,” said the Minister of Economy and Environment of Ukraine Oleksandr Kravchenko.
Among the main changes in the program are:
– New areas of financing. Preferential loans will be issued for the reconstruction of fuel and storage infrastructure, modernization of processing industry enterprises, and also, as a temporary anti-crisis measure, for financing working capital for wholesale and retail trade (for settlements with manufacturers);
– Change in compensation conditions. Instead of a floating rate tied to the UIRD index, a fixed compensation from the state is being introduced in the amount of 5.5% per annum of the bank’s base rate;
– Increased loan limits. The minimum loan amount will be UAH 100 million (for frontline areas – UAH 30 million). The maximum limit for a group of related companies is set at UAH 1 billion;
– Strengthening security. A separate item is allocated for financing measures to increase the stability of fuel infrastructure – in particular, moving tanks, pumping stations and fuel storage systems underground.
The program is implemented through the National Development Agency (NDA). Applications can be submitted through authorized banks (their list will be published on the NDA website). Projects are selected on a competitive basis – according to program priorities and within the budget after assessment by banks. (Economy Ministry)