By KYIV. Nov 16 (Interfax-Ukraine) – More than 100 micro, small and medium-sized enterprises (MSMEs) will be able to receive preferential loans as part of OTP Bank’s cooperation with USAID under the Financial Sector Reform project, Pavlo Huzyr, head of alternative sales channels projects of OTP Bank’s Agrofabrika, said.
According to him, cited in the bank’s press release, it is planned to provide factoring financing in the form of a revolving credit line for UAH 100 million and UAH 430 million, respectively.
“But, given the demand and efficiency in utilizing the above limits, we will contact USAID with proposals to extend the cooperation program,” the banker emphasized.
It is said that the program is aimed at replenishing working capital for carrying out the main activity with interest rate compensation at the expense of a grant from USAID down to 7% p.a. for 12 months.
As Huzyr reported, the program provides lending with a compensated rate to relocated businesses, critical sectors of the economy, enterprises affected by Russian aggression, and enterprises with a significant share of women in the ownership structure.
“The key industry of Ukraine – agribusiness corresponds the category of ‘critical industry,’ so it becomes a key consumer of the program. Therefore, agricultural producers can get financing on these unique terms,” he emphasized.
It is indicated that, according to its terms, the company should employ no more than 250 employees.
Huzyr added that, as part of a joint program with USAID, there is a direction to provide factoring financing at 7% per annum, also thanks to compensation from the grant.
“This will be an effective financing solution for replenishing working capital and covering cash gaps for large trade chains, retail, pharmaceutical, etc., which work with advance payments, including suppliers of commodity resources for agricultural producers on the terms of deferred payment,” the head of alternative sales channels projects of OTP Bank’s Agrofabrika said.
As Olha Volkova, director of the corporate sales department for small and medium-sized businesses at OTP Bank, told Interfax-Ukraine, by now the financial institution plans to provide loans to more than 100 SMEs, and the pipeline exceeds UAH 800 million within this project.
