Agreement on interest compensation under the state programme “Affordable Loans 5-7-9”

Today, 18 May, Kyiv Regional State Administration, Entrepreneurship Development Fund and 10 Ukrainian banks signed an agreement on interest compensation under the state programme “Affordable Loans 5-7-9”. This is the first case of such an agreement in Ukraine.

According to the agreement, from 1 July 2023 the Kyiv Regional Military Administration will compensate regional enterprises’ credit interest down to 0%. This applies to businesses participating in the «Affordable Loans 5-7-9» programme that received a loan for investment purposes, provided that jobs are preserved and/or new jobs are created. Funds for compensation will be allocated from the regional budget.

The agreement was signed by the head of the Kyiv Regional Military Administration Ruslan Kravchenko, executive director of the Industry Development Fund Andrii Hapon, and representatives of Ukrainian banks. In particular, Oschadbank, Ukrgasbank, JSC Ukreximbank, ProCredit Bank Ukraine, Bank Kredyt Dnipro, PUMB, Agroprosperis Bank, KredoBank, Creditwest Bank Ukraine and PrivatBank. The director of the Kyiv Regional Development Agency Oleksandr Vakhovskyi was also present at the signing.

We hope that this is only the first step towards compensating loan interest from the regional budget. The Agency will try to use this instrument of cooperation between banks and regional authorities for industrial parks as well. Indeed, the Strategy for the Development of Industrial Parks until 2030 envisages the creation of a mechanism to ensure interest rate compensation for enterprises involved in the development of industrial parks. In particular, for managing companies and resident companies that will operate on their territory.