The Ministry of Economy and the Ministry of Finance are developing new loans for the energy sector
18 March 22:35
The Ukrainian government is working on launching a new loan program for energy projects aimed at large and medium-sized businesses.
This was announced by Prime Minister Yulia Svyrydenko, according to [Komersant].
According to her, the program is being developed by the Ministry of Economy of Ukraine in collaboration with the Ministry of Finance of Ukraine.
Why the need for new loans arose
According to Svyrydenko, state-owned banks are already participating in the financing of energy projects for communities.
In addition, businesses can receive financing under the state program of preferential loans, “Affordable Loans 5-7-9%.”
However, as the government notes, these instruments are insufficient for large and medium-sized companies planning to implement large-scale energy projects.
When the government will review the program
The Prime Minister has instructed officials to prepare a new program and submit it to the Cabinet of Ministers for consideration in the near future.
“The Ministry of Economy, together with the Ministry of Finance, is preparing a new lending program for energy projects for large and medium-sized businesses,” Svyrydenko noted.
The role of state-owned banks
During the meeting, the government also discussed cooperation with state-owned banks.
According to the Prime Minister, banks should become more actively involved in the implementation of state programs.
Specifically, this involves:
- support for social benefits
- funding medical programs
- participation in community programs, including health screenings for people aged 40 and older
International investment guarantees
Separately, the meeting discussed the possibility of expanding international guarantees for financing energy projects.
This includes, in particular, cooperation with:
- the European Investment Bank
- the European Bank for Reconstruction and Development.
The Ministry of Finance of Ukraine was also tasked with analyzing the use of local guarantees in the regions and proposing mechanisms for their expansion.
Part of the regional resilience plan
The new lending program is intended to be part of a broader government strategy to finance regional resilience plans.
According to the government, the Cabinet of Ministers is working to ensure full financial resources for the implementation of these plans, in particular through domestic funding sources.
