In order to reduce public spending, the government has optimized the state programs " This was reported by the press service of the Ministry of Finance.
“This will allow optimizing state budget spending on financing these programs in accordance with the challenges of the time, directing funding to more relevant areas, ensuring continuous funding in the face of rising market interest rates on loans and the loan portfolio,” the Ministry of Finance says..
As follows from the explanation of the Ministry of Finance, the resolution provides:.
cancellation of compensatory rates for loans and compensatory remuneration for leasing at the level of 0% per annum;
cancellation of financing to prevent and overcome the consequences of COVID-19 pandemics, including cancellation of refinancing of such loans.
Within the framework of the State program "
establishment of a compensatory rate for loans for investment purposes for medium and large enterprises of 9% per annum with the possibility of reduction when creating new jobs up to 7% per annum;
establishment of a compensatory rate for loans for investment purposes for micro and small enterprises at the level of 7% per annum with the possibility of reducing for investment loans up to 5%;
establishment of a compensatory rate of 9% per annum for loans to replenish working capital for all enterprises.
Within the framework of the State program "
establishment of compensatory remuneration for medium and large enterprises 11% per annum with the possibility of reduction when creating new jobs up to 9% per annum;
establishment of compensatory remuneration for micro and small enterprises 9% per annum with the possibility of reduction when creating new jobs up to 7% per annum.
As for the prolongation of previously issued loans, then, as follows from the clarification, such an exception will be made only for agricultural producers and businesses that have received loans for the 2022 sowing season.
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Recall that in the summer of 2022, the Cabinet of Ministers allowed banks to increase the rate for new loans - up to 20%.
Since the beginning of the war, bank lending has been predominantly due to government programs such as " However, by the end of 2022, the reduction in net loan portfolios began both due to the risks of credit losses, as well as due to the rapid repayment of loans, which, according to First Deputy Chairman of the NBU Ekaterina Rozhkova, was due to suppressed demand for loans due to security risks.
At the end of 2022, the National Bank revised its estimate of changes in bank credit losses due to Russia's war in Ukraine and worsened it from 20% to 30%.
As you know, the program of cheap loans for business 5-7-9% was introduced a few years before the war.. In two years, as of the end of 2022, small and medium-sized businesses received 17.6 thousand. loans.
As of December 1, 2022, 15.6 thousand. loans in excess of 50.2 billion. hryvnia. In November 2022 alone, 936 loan agreements were concluded in the amount of 3.24 billion. UAH. with a share of obligations on the principal debt guaranteed by the state in the amount of 1.6 billion. UAH.
Read about the problems that small and medium-sized businesses face during the war in the article by Viktor Vilchinsky - “Small and medium-sized businesses during the war: how to get funding?