Cabinet expands business support mechanisms by introduction portfolio guarantees

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Open source

On November 25, at a regular meeting, the government decided to determine a mechanism for providing state guarantees on a portfolio basis, the press service of the Ministry of Economy reported.

“The use of portfolio government guarantees is a successful global practice to support small and medium-sized businesses. For the first time in our history, this tool will finally work in Ukraine. Now even more Ukrainian entrepreneurs will have access to cheap and long-term financing, which will allow them to effectively implement their business and the economy to develop,” said Minister of Economic Development, Trade and Agriculture.

According to him, the amount of funds for the implementation of the portfolio guarantee instrument is UAH 5 billion for 2020. Funds are provided in hryvnia for a period of 1 to 10 years in an amount not exceeding UAH 100 million.

Thus, the tool will be able to be used by micro, small and medium-sized businesses whose business activity period exceeds 1 year and who are not bankrupt and / or have not been filed for bankruptcy proceedings against them.

“State guarantees apply to financing an investment project, investment purposes, to refinance debts on other loans, including loans under the 5-7-9 program, as well as to finance working capital,” the minister added.

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