The German-Ukrainian Fund, where the members are the National Bank and the Ministry of Finance of Ukraine, and German development bank KfW, is ready to invest a total of EUR 18 million in the development of small and medium-sized businesses in Ukraine, as reported on the NBU website with reference to the statement by Director of NBU Financial Controlling Department Oleh Strinzha, who concurrently serves as the Fund`s executive director.
According to him, the National Bank at the moment is revising the Comprehensive Program of Financial Sector Development 2020. The updated program will see targets for the restoration of lending, including the simplification of a procedure of funding receipt by the Ukrainian businesses and the settlement of bad debts of enterprises.
”The National Bank of Ukraine supports the government`s SMB Development Strategy 2020. The Fund`s capitalization allows it to be quite an effective tool for financing SMBs in Ukraine by attracting external credit lines at low interest rates and financing of partner banks to lend to the target areas SMB development,” said Strinzha.
Also, the regulator said that the Ministry of Economic Development and Trade had presented the SMB Development Strategy 2020, developed with the support of the European Union. The strategy aims to increase the role of SMBs in the Ukrainian economy and focuses on six main areas: deregulation, simplification of the SMBs` access to financing and easing of tax administration, increasing the attractiveness of entrepreneurship, attracting SMBs to foreign trade, and ensuring innovation.
UNIAN memo. The German-Ukrainian Fund is a non-banking financial institution established in 1999 by decree of President of Ukraine. Its goal is to promote the development of micro, small and medium enterprises through the provision of loans via Ukrainian banks. The participants of the Fund are the National Bank of Ukraine (31.3%), the Ministry of Finance of Ukraine (31.3%), and German development bank KfW (37.4%).