Ukraine has changed the rules on state guarantees for businesses—debtors will be blacklisted
14 August 16:42
The Cabinet of Ministers of Ukraine has refined the procedure for providing state guarantees on a portfolio basis for micro, small, and medium-sized enterprises (MSMEs), according to "Komersant Ukrainian".
The main goal of the changes is to make this financial instrument more reliable for banks, protect honest borrowers, and at the same time strictly safeguard state budget funds from losses.
Prior to this decision, the Ministry of Finance conducted a detailed analysis of how the program operated between 2020 and 2025. Officials assessed the quality of the loans and calculated how much budget money had to be spent on payments to banks when borrowers failed to repay their debts. Based on the results of this audit, it was decided to significantly streamline the rules and make them more transparent. The main changes that will now apply to banks and entrepreneurs are stricter loan selection criteria.
Watch us on YouTube: important topics – without censorship
The criteria for initially including any loan in the state guarantee program portfolio have also been expanded. The government will now scrutinize every business project more closely at the outset. A temporary “ban” will be imposed for unpaid debts. The principle of responsible lending has been introduced. If an entrepreneur took out a loan, failed to repay it, and the state had to pay out under the guarantee, that entrepreneur will be barred from receiving new state guarantees for a clearly defined period.
The government has also detailed the procedure for financial institutions under the “50/70” and “80/80” programs. It is now clearly outlined what to do if the estimated volume of guarantees exceeds the maximum limit under one of these programs. The list of documents a bank must submit to receive a payment from the government has also been clearly defined. If the bank subsequently collects the overdue debt from the debtor or if the parties agree to restructure the debt, these funds will not remain in the bank’s accounts. They must be returned to the state budget.
The Ministry of Finance emphasizes that support for businesses continues. State guarantees will continue to be provided as usual, but they will be subject to stricter oversight.
Read us on Telegram: important topics – without censorship
