The Cabinet of Ministers of Ukraine has approved the implementation of the joint project with the European Investment Bank (EIB) to support small and medium-sized businesses and companies with average capitalization levels, the loan for the implementation of which amounts to EUR 400 million.
According to the website of the Ministry of Finance, it is about an agreement on the financial support of small and medium-sized businesses between Ukraine and the EIB, ratified by the Verkhovna Rada of Ukraine on July 15. Start of the project requires the selection of the participating banks and determining the conditions of providing loan funds, according to the decision taken by the Cabinet.
It is reported that the project will be implemented through attracting long-term financial resources in the real sector of economy, modernization and improve production efficiency, reducing the energy intensity of economic entities, increase in tax revenues to the state budget, improving the business climate and creating the preconditions for investment activity.
It is also reported that the selection of applicant banks and the conclusion of contracts with them will be held in the near future.
As UNIAN reported earlier, the Ministry of Finance of Ukraine attracted a EUR 400 million loan from the European Investment Bank for the implementation of projects on development of commercial banks, as well as small and medium-sized businesses.
The participation in the funds distribution program is possible for small and medium enterprises with the number of staff under 250 people, mid-cap entities with up to 3,000 employees, as well as companies hiring more than 3,000 people.
The size of loans will range between EUR 25 million (for SMBs) and EUR 50 million (for companies with over 3,000 employees). It is noted that the projects, for which companies seek funding, should meet the EIB requirements. The allocation of loan funds will be carried out through state-owned Ukreximbank.