Today, the Government has approved the project “Loans for small and medium-sized businesses and companies with midlevel capitalization” which shall be implemented jointly with the EIB.
What’s it about?
On July 15, 2016, the Parliament ratified a financial agreement between Ukraine and the EIB on the implementation of a project for the financial support of small and medium-sized of business.
To launch the implementation of this international project, legal basis have to be created and all legal procedures have to be put in place. First, participating banks must be selected and financial terms must be set to provide loan funds to them. This is the task which is now settled by the Government. The loan provided for the project implementation amounts 400 million Euros.
What’s in it for Ukraine?
The Government’s decision shall contribute to positive developments at the macro and micro levels.
The project shall be implemented as follows:
- attraction of long-term financial resources to the real economy sector to support the development of the private sector;
- modernization of production facilities and increase of their effectiveness;
- accelerated reduction of energy consumption by business and improvement of the balance of payments by reducing energy imports;
- increase of tax revenues for the state budget;
- improvement of the business climate and establishing conditions for higher investors’ activity.
The selection procedure for banks will be conducted soon to sign contracts with the winners and thus to deliver legal reasons for the implementation of the project prepared jointly by the Government and the Ministry of Finance.