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Great businesses continue to voice concerns regarding their inability to access the state program of preferential loans “5-7-9.” The Ministry of Economy and Environmental Protection assures that they will offer such entities the opportunity to obtain loans at 10% per annum.
“A program is currently being finalized to enable the lending to large businesses at 10%,” stated Deputy Minister Vitaliy Kindrativ during an online meeting with businesses, organized by the parliamentary committee on finance, tax, and customs policy earlier this week.
According to Andriy Telyupa, advisor to the patron service of the Minister of Economy, the relevant amendments have been developed in conjunction with representatives from the fuel and retail sectors.
“We intend to leverage Resolution No. 594 to extend its benefits to all types of businesses, irrespective of size, so that large businesses also have the chance to secure cheaper loans for recovery. Therefore, we have prepared these amendments and are currently preparing them for submission,” Telyupa said.
Cabinet of Ministers Resolution No. 594, dated April 29, approved an experimental project to provide state financial support to businesses for the development of distributed generation. It stipulates the compensation of interest rates exceeding 10% for loans related to the construction of new generation capacities, energy storage systems, and associated infrastructure.
Yaroslav Starovoytenko, President of the Oil and Gas Association of Ukraine, explained that the industry is requesting access to such loans to construct underground storage tanks for petroleum products as part of the reconstruction of existing oil depots.
“We propose implementing certain safeguards to ensure that the facility is constructed within a year and that the loan term does not exceed five years,” added the head of the association.
He noted that the estimated cost for such a reconstruction of an oil depot, including the installation of 4,000 cubic meters of underground storage, is approximately $2 million, or up to 100 million UAH.
“We propose issuing loans of up to 100 million UAH per facility at 10% per annum for a term of 5 years (…) Existing oil depots possess the necessary infrastructure, logistics, land, and other essential components (…) Currently, some companies are undertaking pilot projects at their own expense. However, with state support, this process can be rapidly scaled and implemented nationwide,” emphasized Starovoytenko.