Energy Project Financing Initiative
The Ministry of Economy and the Ministry of Finance are developing a new lending program to finance energy projects for medium and large enterprises. Prime Minister Yuliia Svyrydenko has directed that the program be presented for government consideration in the near future. She emphasized the importance of state-owned banks playing a more active role in implementing other government initiatives, particularly those related to social payments and medical services.
"Banks must become a tool for scaling up such solutions for citizens," stated Yuliia Svyrydenko.
During a meeting with representatives of state-owned banks, discussions also covered expanding international guarantees, including support from the European Investment Bank and the European Bank for Reconstruction and Development. The Prime Minister instructed the Ministry of Finance to analyze the potential for utilizing local guarantees in various regions. State banks are already actively lending for community energy projects and supporting businesses under the existing 5-7-9% loan program.
Government Energy Support Package
Since February 2, entrepreneurs have been able to access a government energy support package. Individual entrepreneurs (FOPs) of groups 2 and 3 who employ staff can receive a one-time, non-repayable financial grant ranging from UAH 7,500 to UAH 15,000. Applications for this assistance can be submitted online via the Diia portal under the "Entrepreneurship" category on the "FOP Energy Resilience Assistance" service page.
- Funds are credited to a Diia.Card through five participating banks:
- PrivatBank
- Sense Bank
- Bank Credit Dnipro
- A-Bank
- monobank
Micro, small, and medium-sized businesses can obtain preferential loans of up to UAH 10 million at 0% annual interest under the "Affordable Loans 5-7-9" program. Loans under this initiative are provided for a term of up to three years. These measures are part of a broader effort to bolster Ukraine's private sector, which faces immense pressure due to the ongoing war. Such initiatives are crucial for supporting Ukrainian businesses, especially within a challenging and volatile economic environment.
The introduction of this new energy project lending program and the broader business support framework underscore the government's commitment to ensuring economic stability amid current challenges. By activating state banks in this sector, the government aims to attract investment and develop infrastructure, which would positively impact the country's overall economic climate. The provision of non-repayable grants and preferential loans to small and medium enterprises further demonstrates the state's attention to business needs during difficult times. Collectively, these measures represent significant steps toward the recovery and strengthening of Ukraine's economy.
In addition to the new energy loan initiative, the government has also expanded its support for individual entrepreneurs. This includes updates to the energy assistance program for sole proprietors, allowing more sectors to benefit and extending application deadlines. Such measures aim to bolster the resilience of businesses across Ukraine during these challenging times.