NATIONAL BANK OF UKRAINE PROPOSES GOVERNMENT TO EXPAND BUSINESS LOANS

At the beginning of April, the National Bank of Ukraine (NBU) asked the Cabinet of Ministers about the next developments in order to increase business lending: expanding the portfolio guarantee program for large agricultural enterprises and large enterprises of strategic industries, as well as to increase the duration of loans to farmers for the planting season from six months to one year.
“And if businesses have any additional proposals, we urge them to share them with the European Business Association (EBA), we will forward them to the National Bank,” the EBA said on its website following a a meeting with the National Bank this week, which was also attended by the American Chamber of Commerce.
As one of the participants of the meeting clarified to the Interfax-Ukraine agency, among the other proposals of the NBU to the government are the expansion of state support for credit lines, leasing, to endorsed invoices, as well as an increase in portfolio guarantees from 80% to 100% of the amount of loans for the “red” areas, where the fighting is taking place.
The NBU management also said at the meeting that the banks’ plans for the second quarter provide for loans to Ukrainian companies for almost 66 billion UAH, including 30 billion UAH for the agricultural industry in the near future. future, of which 5.8 billion UAH have already been allocated. .
The National Bank clarified that since the beginning of the war, the four largest banks have increased their loan portfolio by 12.5 billion UAH.
According to Interfax-Ukraine, the government has previously criticized the banking system for its reluctance to take lending risks, especially in “red” areas, and proposes to address this problem in state-owned banks by setting special KPIs. In addition, the Ministry of Economy is discussing the idea of ​​appointing a special deputy minister who would oversee this issue and appointing the former head of the board of Ukreximbank Yevgeny Metsger to this post.

BUSINESS LOANS, NBU

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