Expert opinion

During April-June, interest rates on targeted bank loans for small and medium-sized businesses, excluding preferential government programs up to 15-17% per annum.  This was reported by Oksana Shulga, director of the small and medium business department of GLOBUS BANK.

 

According to the expert, the main incentive for improving lending conditions is a gradual reduction of the discount rate. In her opinion, within 2-3 months, the National Bank can reduce the discount rate from the current 14.5% to 14-13%, which will enable joint-stock banks to more actively develop lending to small and medium-sized businesses on more favorable terms.
"The development of bank lending is actually "tied" to the size of the discount rate. After all, the accounting rate actually fixes the current value of the national currency and the value of the financial resources involved in the development of lending. That is why the lower the discount rate will be, the more favorable the conditions will be for borrowers," Oksana Shulga emphasized.

The expert noted that in the first quarter of 2024, compared to the same period last year, the number of issued targeted loans for SMEs almost doubled . At the same time, more than 90% of all loans issued to SMEs fall under joint programs of banks and manufacturers/suppliers of basic means of doing business.

She drew attention to the fact that since the beginning of 2024, the greatest demand has been observed for loans for the purchase of cars for businesses (more than 40% of of all loans for small and medium-sized businesses), purchase of commercial equipment (about 30% of all loans for SMEs), production equipment (25% of loans). At the same time, the most common (more than 95% of loans) are loans for a term of 3-5 years with an average amount of the requested loan up to UAH 1.2 million.
"State programs to support small and medium-sized businesses are, for example, "5-7-9", "Affordable factoring", "Affordable financial leasing 5-7-9%" is an important basis for banks directing efforts to develop their own credit programs. It is still too early to say that joint-stock banks will be able to offer competitive lending terms for small and medium-sized businesses. The main advantage of bank programs compared to state programs lies in their targeting for the purchase of specific equipment (technical means), transport or equipment thanks to joint programs with manufacturers / suppliers of business fixed assets, as well as in the optimal ratio of the amount and term of credit: up to 2-3 million hryvnias for a period of up to 5 years with monthly repayment," the banker emphasized.

The expert believes that the popularity of bank loans for small and medium-sized businesses will only gain momentum in the second quarter. At the same time, the optimal result for those banks developing the direction of lending to small and medium-sized businesses will be 50-60 loans issued every month for a total amount of over UAH 80 million.
"Currently, only ⅓ of all combined banks provide appropriate loans to small and medium-sized businesses outside of state credit programs. However, the favorable situation in the country's economy, the "liberal" discount rate can significantly affect this type of lending," concluded Oksana Shulga.