Eng 
Укр By the end of the year, interest rates on loans to small and medium-sized businesses will range from 13.5% to 16% per annum
By the end of the year, interest rates on loans for small and medium-sized businesses will range from 13.5% to 16% per annum. This was reported by Oksana Shulga, Director of the Small and Medium Business Department of GLOBUS BANK. This was reported by Oksana Shulga, Director of the Small and Medium Business Department of GLOBUS BANK.
According to the expert, the lowest rates, which are 13.5% per annum, will be offered for "energy loans" for the purchase and installation of alternative power sources (solar panels, heat pumps, and the creation of new energy generation at enterprises, etc.)
Oksana Shulga
Director of the Small and Medium Business Department of GLOBUS BANK
She reminded that the reduction of interest rates on SME energy lending programs is a practical evidence of the effectiveness of the Memorandum between the largest banks, which have committed themselves not only to unify their approach to their own lending policies, but also to help ease credit conditions for the purchase and installation of alternative energy supply systems.
"Despite new economic challenges, such as rising prices due to accelerating inflation, renewed devaluation of the hryvnia, and unprecedented power outages, energy loans should become a strategic direction for economic development and building an energy-independent country. New challenges are, above all, new opportunities that should be seized," the expert emphasized.
The banker said that from September to November, interest rates on targeted loans for SMEs to purchase fixed assets (production equipment, vehicles, special vehicles, etc.) may be reduced by 1-1.5% to 16% per annum. In her opinion, this is a direct result of the discount rate cut to 13%, which allows banks to gradually improve credit conditions for borrowers.
According to the expert, in the first half of the year, the bulk of targeted loans for small and medium-sized businesses were issued to enterprises in the manufacturing, industrial and construction sectors (up to 60% of the total number of targeted loans for small and medium-sized businesses), trade and service companies (15% of loans each), and funding for building and grounds maintenance companies was gradually increasing. The average loan amount is UAH 1.2 million for a term of 1 to 5 years.
According to Oksana Shulga, special-purpose loans have their advantages: the object of financing becomes a loan collateral, which does not require additional resources from the borrower to secure the loan.
In addition, many targeted loans are supported by the state (e.g., the state programs "5-7-9", "Affordable Financial Leasing 5-7-9", "Affordable Factoring"), local administrations, and state funds (programs for condominiums and housing cooperatives "Energodom" and "Grindim" from the Energy Efficiency Fund), which allows the borrower to receive compensation for the interest rate, part of the loan, and to expect reimbursement of part of the cost of the equipment.
She said that currently, more than 64% of targeted loans to SMEs are provided by government programs (including compensation programs from local authorities). The rest of the loans for small and medium-sized businesses (over 35%) are issued under partnership programs implemented by banks together with manufacturers and suppliers of various business tools.
"Almost all targeted loans issued under purely banking programs are partnerships, i.e. jointly between banks and manufacturers (suppliers, sellers) of equipment, special vehicles or transport necessary for business. Thanks to such programs, a borrower can get a loan at rates 20-30% below the market average," the expert emphasized.
According to her forecast, the total number of targeted loans issued to small and medium-sized businesses could grow significantly due to the banks' Memorandum on Lending Development and a significant expansion of the 5-7-9 soft loan program for condominiums and housing cooperatives to purchase equipment for generating and storing electricity from alternative sources (solar and wind) at 7% per annum.
"In the second half of the year, the number of loans issued for the needs of small and medium-sized businesses will increase significantly: compared to the first half of the year, the number of such loans may increase by an average of 25-30%. And compared to 2023, the volume of loans issued will increase by more than 50%," Oksana Shulga summarized.
Reference:
JOINT STOCK COMPANY COMMERCIAL BANK GLOBUS (GLOBUS BANK) was founded in 2007.
As of July 2024, the regional network includes 31 branches. All branches of the bank are part of the unified Power Banking network, which allows them to operate in the absence of electricity.
GLOBUS BANK's credit rating on the national scale at uaAAA has been confirmed, as well as the deposit rating at ua2+ according to the scale of the Expert Rating Agency.
The bank's priority areas of activity are lending to energy-efficient projects, mortgage lending in the primary market, car loans, and lending to small and medium-sized businesses.
GLOBUS BANK is an accredited partner of a number of government programs: the state mortgage program "eOselya", the program of preferential lending to small and medium-sized businesses "5-7-9", "Affordable Factoring", "Affordable Financial Leasing 5-7-9", "Energy Independence of Individuals - Household Owners".
The Bank is a partner of the State Institution "Energy Efficiency Fund" in the programs of lending to condominiums and housing cooperatives "Energodom" and "Grindim".
On June 25, 2024, GLOBUS BANK became one of the 17 largest Ukrainian banks that signed a Memorandum on lending to energy infrastructure restoration projects.
Chairman of the Board of GLOBUS BANK Serhiy Mamedov is Deputy Chairman of the Board of Directors of the Confederation of Builders of Ukraine and Vice President of the Association of Ukrainian Banks.
