2020-09-03T18:17:00+03:00 Politics 2024-05-15T07:57:36+03:00

Ukrainian news

Ukrainian news

Rada Approves State Guarantees For Loans For Businesses For UAH 5 Billion

Rada Approves State Guarantees For Loans For Businesses For UAH 5 Billion

The Verkhovna Rada has approved state guarantees for loans for businesses in the amount of UAH 5 billion.

Totally, 268 Members of Parliament voted for the adoption of bill No. 3659-d as a whole, with the minimum required 226, Ukrainian News Agency reports.

The parliament amended the law "On the State Budget for 2020" to introduce a mechanism for providing state guarantees on a portfolio basis and "financial and credit mechanisms for providing citizens of Ukraine with housing."

The law provides for the possibility of providing in 2020 state guarantees for loans to micro, small and medium-sized businesses in the amount of up to UAH 5 billion on a portfolio basis.

Such a guarantee should not exceed 80% of the total amount of such debt obligations for the loan portfolio and 80% for each individual loan.

At that, the Ministry of Finance is allowed to carry out an additional issue of government domestic loan bonds (OVDPs) by the decision of the Cabinet of Ministers for the additional capitalization of a joint-stock company, 100% of whose shares are owned by the state represented by the Ministry of Finance.

As Ukrainian News Agency earlier reported, the Ministry of Finance previously signed agreements allowing the UkrGasVydobuvannya state gas production company to receive a loan from the European Bank for Reconstruction and Development (EBRD) under a state guarantee in the amount of EUR 51.85 million.