Business lending in Ukraine is poised for growth due to new tools.

“This year has seen the emergence of new work areas. For instance, consortium lending enables funding for large-scale infrastructure projects. Banks, both private and state-owned, are collaborating to finance initiatives focused on economic development. I believe that the banking sector and businesses must explore new opportunities for collaboration. This will help banks enhance their internal programs to meet the evolving needs of businesses, while entrepreneurs can better understand which ideas are currently eligible for funding,” stated Volodymyr Mudryi, Chairman of the Board of the Independent Association of Banks of Ukraine.

Mudryi indicated that bank lending to businesses is already rising; in the first quarter, the hryvnia corporate portfolio grew by 9.5%, with a year-over-year increase of 28.4%. Additionally, various state programs are in place to support small and medium-sized enterprises, notably the Affordable Loans 5-7-9% program, alongside loan compensation for home-produced machinery and equipment. The share of SME loans within the banking system has now exceeded 60%.

“However, when considering GDP, the overall bank loan portfolio represents only 19%. In Poland, this figure is 33%. Hence, there is significant potential for growth,” the banker stressed.