OTP Bank has received a second grant in the amount of USD 2.76 million from the USAID Investment for Business Resilience (IBR Project) to expand access to financing for micro, small and medium-sized enterprises.
This is stated in the bank's message, the Ukrainian News agency reports.
More than 100 companies have already been financed at the expense of the first tranche.
Taking into account the new tranche of USD 2.76 million, the total amount of the grant will increase to USD 4 million.
The funds will be used to compensate part of the interest rate for borrower companies.
The grant program provides that the bank will lend to the business at an interest rate of 9.9% per annum in the first year of the credit agreement.
The difference between the customer rate and the market rate will be compensated by grant funds.
In the second and subsequent years, clients will pay interest for the use of credit funds at the rate of UIRD3m+5% per annum (UIRD3m is the Ukrainian rate index for three-month deposits of individuals).
Micro, small and medium-sized enterprises with an annual income of up to EUR 50 million and the number of employees up to 250 people belonging to one of the following target groups will be able to receive financing on preferential terms:
- a relocated business or one affected by hostilities;
- companies belonging to critical sectors of the economy (agricultural production, production of building materials, electrical devices, transport, logistics, processing, etc.);
- companies co-owned by women.
The maximum loan amount that a company or a united group of companies can receive under this program is UAH 20 million, the minimum is UAH 1 million.
The grant program also applies to factoring agreements, under which bank clients can receive up to 90% of the cost of supplies in the amount from UAH 2 million to UAH 20 million.
As the Ukrainian News agency earlier reported, OTP Bank has been present on the Ukrainian market since 1998, its 100% owner is the largest Hungarian bank OTP Bank Plc.
OTP Bank is part of the OTP banking group together with AMC "OTP Capital" and "OTP Leasing".
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