Business will be able to attract preferential loans up to UAH 1 billion for recovery after attacks

The government has expanded state support for large projects in the fuel sector, logistics, trade, and processing industry. Preferential financing will be available, in particular, for restoring fuel and warehouse infrastructure, modernizing production, and replenishing working capital, with a maximum limit of UAH 1 billion for a group of related companies.

Prime Minister Serhiy Koretskyi announced this.

According to him, the new mechanism should help enterprises resume operations faster after Russian attacks and maintain supply chains critical to the economy.

Preferential loans can be directed to restoring fuel infrastructure and warehouse complexes. This, in particular, makes it possible to finance the reconstruction of facilities damaged or destroyed by shelling.

A separate direction will be the modernization of processing industry enterprises.

Financing will also be available to wholesale and retail trade enterprises for replenishing working capital - that is, funds needed for purchasing goods and maintaining current operations.

The state will compensate part of the interest rate

According to Koretskyi, the state will compensate 5.5% per annum of the bank's base interest rate.

This means that it is not a loan at 5.5% per annum: the actual rate for the borrower will depend on the base conditions of the specific bank, and the state will cover a defined portion of the interest burden.

The maximum amount of financing for one group of related companies will be UAH 1 billion.

Thus, the mechanism is aimed not only at small and medium-sized businesses but also at large companies and projects for which the traditional limits of state credit programs are insufficient.

The program was prepared after increased strikes on business

The government first announced the preparation of a new mechanism on September 10, amid intensified Russian attacks on enterprises, warehouses, and logistics infrastructure.

At that time, the Cabinet of Ministers stated that it was working on preferential lending to businesses for replenishing working capital with a limit of up to UAH 1 billion for one enterprise or group of enterprises. The funds were planned to be allowed to be used, in particular, for purchasing goods.

Now the list of directions has been specified and expanded to include restoring fuel and warehouse infrastructure, processing industry, wholesale and retail trade. According to the government's current statement, compensation will be 5.5% per annum of the bank's base rate.

In parallel, the Cabinet of Ministers expanded the war risk insurance program for businesses, in particular including Kyiv and Kyiv region in high-risk areas and increasing the maximum insurance premium compensation to UAH 5 million per year.

Based on materials from: Serhiy Koretskyi, Cabinet of Ministers of Ukraine