Govt provides Oschadbank with another UAH 4 bln in portfolio state guarantees for 2024
The Cabinet of Ministers has allocated an additional UAH 4 billion to the state-owned Oschadbank (Kyiv) to finance micro, small and medium-sized businesses (MSMEs) under the state program of guarantees for portfolio loans this year, the bank's press service reported on Monday.
"In parallel, the bank is using the previous limit in the amount of UAH 4.65 billion. The new volume of state guarantees will allow Oschadbank to significantly increase lending volumes with relaxed collateral requirements," the press release said.
Since the end of February 2021, Oschadbank has issued almost 4,400 loans under this program for UAH 15 billion, their current portfolio is UAH 7.5 billion, the bank specified.
"Most loans were provided to agro-industrial companies, processing, manufacturing and trading enterprises. Most borrowers attracted working capital financing for a period of two to three years. The average loan amount is about UAH 3 million," the financial institution reported.
Oschadbank reminded that loans under the state portfolio guarantee program can be received by business entities with an annual net sales income of up to EUR 50 million (in equivalent) or a number of employees of up to 250 people.
The maximum loan amount is UAH 100 million for agricultural enterprises, and UAH 400 million for the purpose of restoring assets lost as a result of Russian aggression.
The commission for the borrower is up to 1% per annum. The guarantee period is no more than 10 years - to secure debt obligations on loans provided for the purpose of restoring fixed assets partially or completely destroyed as a result of military aggression.
According to the terms of the program, the borrower must not have overdue debt to the bank on the date of actual issuance of the loan. The guarantee can cover up to 80% of the loan amount (for processing enterprises, agricultural enterprises or for business recovery), the borrower provides the rest of the financing with their own movable or immovable property.
According to the National Bank of Ukraine (NBU), as of July 1, 2024, Oschadbank ranked second (UAH 435.06 billion) in total assets among 62 banks in the country. The financial institution's net profit for the past year amounted to UAH 5.98 billion.
