Ukrgasbank planning 50-mln-hryvni MSME soft loans with Germany's assistance

MOSCOW. Nov 3 (Interfax) - The Kiev-based Ukrgasbank state bank and the German government are launching the phase II program to facilitate access to finance and support the sustainability of Ukrainian MSMEs, which will compensate 30% of the cost of investment projects of micro, small and medium-sized companies, Ukrainian media said with the reference to the bank website.

"Ukrgasbank plans to issue loans totaling about 50 million hryvni under the program with a grant element," the bank said.

A respective memorandum was signed on October 27, it said.

The funding and grants will be available for MSMEs in processing industries, economically significant productions, and other areas of business, the bank said.

"The priority will be given to relocated enterprises and plants in host communities," it said.

Participation in the new program could be combined with the Affordable Loans 5-7-9% state program, which will increase the accessibility of loans for business in crisis.

"Ukrgasbank has substantial experience of loans for business investment projects and is among the program's three leaders by the investment component," the press service said.

As reported, Kiev-based Oschadbank and Lvov-based Credo bank are planning to issue loans to over 150 MSMEs under the program with the German government. In particular, Oschadbank initiates phase II of the grant program together with the German government to compensate 30% of the cost of investment projects under 30,000 euros for more than 100 MSMEs.

Meanwhile, Credo bank plans to begin phase I of the said program and finance 40-50 enterprises.