Kyiv City Council has approved a programme for compensation of 50% of interest rates charged on loans to small and medium enterprises in the city. The interest compensation will be provided by the Kyiv City State Administration (KCSA) in the framework of the EU4Business SME Finance Facility in Ukraine implemented by the German development bank KfW.
Thanks to the initiative, entrepreneurs in Kyiv will be able to attract investment loans from GUF partner banks at a rate of 7.5% per annum.
The next step is to spread Kyiv's experience in other cities and regions of Ukraine in order to significantly reduce the cost of financing for SMEs in Ukraine.
EU4Business works with KfW, as well as other European Financing Institutions, to stimulate local currency lending, especially for micro, small and medium-sized enterprises (MSMEs) in Ukraine that are not earning foreign currency and cannot afford the high costs of borrowing.