The FINANCIAL -- Small and medium-sized enterprises (SMEs) in the Ukrainian capital Kyiv now have the opportunity to access investment loans at just 7.5% – half of the nominal rate of 15% – thanks to the Interest Rate Compensation Programme for SMEs, an EU4Business initiative implemented by the German-Ukrainian Fund, with funding from the EU and Germany.
Under the programme, 50% of the nominal interest rate set by the loan agreement will be compensated for SMEs in Kyiv city, providing the lowest interest rate available anywhere in Ukraine.
Similar agreements in other regions are expected to follow, with the regions of Kharkiv, Ternopil, Mykolaiv, Dnipro and Kirovgrad having expressed interest in taking up the scheme.
The initiative is part of the second phase of the EU4Business SME Finance Facility in Ukraine. It is open to small enterprises (fewer than 50 employees and annual income below €10 million), and medium enterprises (50-250 employees, annual income €10-50 million), for local currency loans of up to the equivalent of €250,000. The term of interest rate compensation is two years.