Preferential loans for businesses will cost the state ₴5B this year.

The state’s debt to banks for interest compensation under the 5-7-9% Affordable Loans program will reach ₴5B by the end of the year, the head of the parliament’s finance committee, Danylo Hetmantsev, said.

In 2023, the program was transformed: loans were divided into investment and circulation (with increased rates), and the list of priority industries and areas also changed.

“This list remains quite broad, and the focus of the program, which was previously focused on small and medium-sized businesses (SMEs), has become blurred. This has led to increased expenditures under the program and increased arrears for payments to banks from the state budget,” Hetmantsev noted.

However, according to him, the program will continue to play a key role in the revival of lending. Still, it must be modified to adapt to limited budget resources in 2024. The 2024 state budget provides ₴18B for interest compensation under the program.