AUB News

On April 4, the Small and Medium Business Development Committee of the Association of Ukrainian Banks held a meeting dedicated to the issues of state support for business during the war. The participants of the meeting actively discussed key issues related to the availability of financial services for SMEs and stimulation of entrepreneurship in Ukraine. The Committee meeting was attended by representatives of the Association of Ukrainian Banks (AUB), representatives of the Entrepreneurship Development Fund (EDF), as well as representatives of banks participating in government programs of preferential lending to businesses, in particular the 5-7-9 program.

One of the main items on the agenda was the improvement of the 5-7-9 program. The panelists emphasized that the program requires certain changes aimed at improving the efficiency and targeting of the program, extending the term of loans for investment purposes, increasing the program limit, and other important aspects.

The panelists noted that it is necessary to provide a forecast for the repayment of compensation debts, as the target indicators of the total limits have already been violated, which complicates the work and harms customers in the market.

The meeting also highlighted the need to monitor and control banks' compliance with the program, as well as the issue of debt owed by the state under the Affordable Loans 5-7-9 program. The participants discussed issues such as insufficient monitoring by the DGF and cases of overcharging by banks.

The Committee members noted that there is a need to strengthen control over the use of budget funds to ensure that they are used efficiently and for the intended purpose.

The discussion also drew attention to the importance of preferential credit support for defense companies.

The Committee members emphasized the communication problems between banks and regulatory and government agencies, which is why certain decisions by the government aimed at state credit support for business need to be finalized. It was noted that imperfect communication between the state and the banking community creates difficulties in the implementation of government programs and may lead to a decrease in their effectiveness. Therefore, cooperation between banks and the state at the stage of developing various credit programs is key to the successful implementation of the state policy to support small and medium-sized businesses.

Committee Chair Tetiana Kornienko noted that the importance of banks' active participation in the decision-making process and discussion of changes to the Affordable Loans 5-7-9 program was evident during the meeting. She emphasized the need to ensure greater interaction and consensus between banks and regulators for the program to function effectively and support businesses in the face of economic challenges.

During the meeting, it was noted that the Association of Ukrainian Banks will collect and summarize the banks' proposals for changes to the program and submit them to the National Bank of Ukraine, relevant ministries and agencies.

“Government lending programs are important in supporting businesses in times of war. However, their effective operation requires constant coordination and improvement of efforts by the state, banks and the business community. The Association of Ukrainian Banks supports the state policy aimed at providing the most affordable loans for Ukrainian small and medium-sized businesses. Our goal is to ensure the availability of loans for SMEs and stimulate their development,” said Andriy Dubas, CEO of the Association of Ukrainian Banks.

The meeting also considered simplifying the procedures for participation in grant programs and expanding the range of banks that can participate in these programs. Committee members emphasized the importance of supporting entrepreneurship by expanding the range of financial services based on grant programs.