German-Ukrainian fund to become platform for lending program announced by Zelensky
The Cabinet of Ministers has transferred the German-Ukrainian fund to the management of the Finance Ministry, and the fund will be a platform for the program of affordable lending of micro- and small-sized enterprises announced by Ukrainian President Volodymyr Zelensky, Ukrainian Prime Minister Oleksiy Honcharuk has said.
"The government has transferred the German-Ukrainian fund to the full management of the Finance Ministry. This fund will become a platform for our lending program, which will be in effect from February 1, 2020," Honcharuk wrote in his Telegram channel from a closed-door government meeting on Wednesday.
The National Bank of Ukraine (NBU) will control the work of the fund, he added.
As reported, the program to support small- and medium-sized enterprises (SMEs) with affordable lending at 5-9% per annum will be launched from February 1, 2020.
Under the program, up to UAH 1.5 million will be lent at 5% per annum for five years if revenue is planned at up to UAH 25 million and a borrower creates at least two new jobs; the interest rate is 7% per annum for a business with revenue worth up to UAH 25 million without creating new jobs (but it offers an option when the rate is cut by 0.5 percentage points for each new employee); and 9% per annum for a working business with revenue worth UAH 25-50 million.
The borrower himself/herself must invest 20% of own funds from all expenses.