03/08/2023

Ukreximbank has financed “Vodolii” municipal utility company of Pryiutivka Village Council (Oleksandriya district, Kirovohrad region) for the purchase of special equipment under the State Programme “Affordable Loans 5-7-9%”.

The Cabinet of Ministers of Ukraine has adopted a Resolution (No. 229 dated 14 March 2023), which made it possible to finance the municipal sector under the terms of State Programme “Affordable Loans 5-7-9%”. Access to this programme for utility enterprises solves urgent problems of small communities and helps them become capable and sustainable.

In times of war, state support is needed more than ever. Pryiutivka territorial community, although it has only 12,000 residents, has ambitious development plans, including a project for an energy-autonomous building, the construction of a pedestrian bridge over Inhulets River and the construction of an administrative service centre. These projects require financing, and the state loan programme, which offers reduced interest rates, can significantly decrease the financial burden.

“It is very symbolic that Ukreximbank became the bank that granted the first loan in Ukraine to a utility enterprise under the State Programme “Affordable Loans 5-7-9%”. After all, there is a stereotype that large banks offer loans only to large businesses and cities with a population of over a million people. Following the decentralisation reform, even small communities have demonstrated their financial capacity, so the unprofitability of certain utility enterprises or medical institutions no longer scares off banks. Local authorities only need to confirm by their decision that they accept the project, allow the loan to be taken and, if necessary, provide for the use of the development budget as a source of loan repayment,” said Mykhailo Medko, Member of the Management Board of Ukreximbank.