The government has expanded state support for large projects in the fuel sector, logistics, trade and processing industry through partial compensation on loans of up to UAH 1 billion, Prime Minister Serhiy Koretsky has said.
"The state will compensate 5.5 percentage points of the bank's base rate. The maximum limit for a group of related companies is UAH 1 billion," he wrote on his Telegram channel on Thursday.
Koretsky said the subsidized loans can now be used, among other things, to restore fuel and warehouse infrastructure, modernize processing industry enterprises, and replenish working capital for wholesale and retail trade.
National Bank of Ukraine Governor Andriy Pyshnyi gave a positive assessment of the initiative at a briefing on Thursday and said the NBU's team had taken part in developing the proposal, an Interfax-Ukraine correspondent reports.
"I hope the final version of the program takes our proposals and vision into account. Overall, I don't see any significant problems with the banking system implementing and delivering on this request," Pyshnyi said.
At the same time, he confirmed there is an outstanding debt to banks under the "5-7-9" compensation program.
"This is already a familiar story: for roughly the last four and a half years, if I'm not mistaken, there has been a certain outstanding balance that builds up to one degree or another, and then we all work together to resolve it," the National Bank governor said.
According to him, the National Association of Banks of Ukraine and the NBU are currently in dialogue with the government and the ministries of economy and finance to address this.
"I feel that we share a common understanding that proper payment of compensation for previously issued loans must be ensured. What will the implementation schedule look like? I think we'll optimize it, taking into account, among other things, the available resources within our regulatory framework and the need to ensure financial stability," Pyshnyi said.
He stressed that the NBU currently has a good dialogue with the government's economic team, which continues across many very important areas.
"Yes, we have some difficult issues to discuss, and the times themselves are difficult. But I feel we are making progress in finding optimal solutions," the National Bank governor concluded.
