Ministry of Economy of Ukraine
Foreign investors can diversify risks by investing in small and medium-sized businesses: Nadiia Bihun
26.04.2024 | 14:56 | Section for Public and Mass Media Relations
Despite the war, the financial system of Ukraine remains stable. At the same time, the expansion of available investment insurance instruments against military risks and the increase in the availability of loans and grants from international banks and international financial organizations will stimulate foreign investors to invest in new joint projects with Ukrainian businesses. This was said by Nadiia Bihun, Deputy Minister of Economy of Ukraine, during her speech at Ukraine’s Future Summit 2024, which took place in Brussels.
“Ukraine is interesting to international partners. Ukrainians showed the whole world what an unstoppable energy our people have for self-development and creativity, what an indomitable entrepreneurial spirit we have. The world admires not only our defenders on the battlefield, but also Ukrainian entrepreneurs who were able to adapt to the war with all its challenges. After an initial decline in the first year of the war, we grew by 5% last year. We expect GDP growth again this year. At the same time, the Ukrainian banking system is stable, profitable and has excellent liquidity. Financial institutions have sufficient capital, and the banking system in general, according to the assessment of the National Bank of Ukraine, is assessed as stable,” Nadiia Bihun explained.
According to her, the high liquidity of the banking system is an extremely important signal for investors.
“However, we see that lending to the real sector of the economy is not recovering quickly enough. Mostly businesses are now attracting loans within the framework of the 5-7-9% Government programme, more than 80% of new loans are issued on preferential terms. And this is quite understandable, because during the war, in order to reduce risks, banks prefer risk-free certificates of deposit and domestic government loan bonds (OVDPs). Thanks to such a strategy, Ukrainian banks are constantly improving their operational processes in order to be effective during the war and after it ends,” Nadiia Bihun continued.
The stability of the banking system is also evidenced by the increase in the deposit portfolio of banks during the war by more than 70% - from UAH 0.7 to 1.2 trillion.
“We welcome the efforts of banks in restoring lending to the real sector of the economy and will continue to support the processes of restoring lending to the private sector. Further increase in the banking system’s lending capacity will depend on the introduction of risk-sharing instruments, including from international banks and MFIs. We also count on the further implementation and development of financial and military risk insurance instruments. From our side, we will increase the possibilities of non-bank lending at the legislative level - factoring, leasing, etc.,” Nadiia Bihun continued.
The allocation of loans and grants from international banks and MFIs on preferential terms and the involvement of private international capital in cooperation projects with small and medium-sized businesses will have a positive effect on increasing the opportunities of Ukrainian banks for business lending.
“We are constantly working to increase the degree of protection of international investments and capital at the level of legislation. The withdrawal of dividends and capital will be gradually liberalized, as well as opportunities for insuring investments against war risks will be expanded.
On the other hand, for investors who refrain from investing because of military risks, we see additional opportunities in the development of cooperation with small and medium-sized businesses. After all, investments in small and medium-sized businesses make it possible to distribute risks in different “baskets”, that is, to diversify them. The development of small and medium-sized businesses also diversifies risks for the economy and makes it more stable. Therefore, I emphasize once again that even now investors who are interested in Ukraine can start cooperation with domestic businesses without waiting for the end of the war,” Nadiia Bihun summarized.
Reed also:
-
03.05.2024 | 17:09
| Section for Public and Mass Media Relations
Own business: more than 16,000 Ukrainians will receive microgrants from the state for business development worth UAH 3.8 billion
Since the launch of the "Own Business" programme, more than 16,000 Ukrainians have already become winners and will receive UAH 3.8 billion to start or develop their businesses. The winners of this year's seventh wave of the programme are 526 Ukrainians who will receive UAH 127 million to develop their businesses. This was announced by Deputy Minister of Economy of Ukraine Tetyana Berezhna. -
03.05.2024 | 17:07
| Section for Public and Mass Media Relations
Canada to participate in implementation of demining training programmes involving women, – Yulia Svyrydenko
Active involvement of women in demining activities in Ukraine will help to increase the efficiency and effectiveness of this process. Ukraine is interested in Canada's support in promoting gender-transformative demining activities in Ukraine. This was stated by the First Vice Prime Minister of Ukraine – Minister of Economy of Ukraine Yulia Svyrydenko during a meeting with the Ambassador of Canada for Women, Peace and Security Jacqueline O'Neill. -
03.05.2024 | 17:03
| Section for Public and Mass Media Relations
A unique agreement: Ukraine and the United Arab Emirates adopted a joint statement on the conclusion of negotiations on the Comprehensive Economic Partnership Agreement between the Governments of Ukraine and the UAE
On 26 April 2024, in Abu Dhabi (United Arab Emirates), First Vice Prime Minister of Ukraine, Minister of Economy of Ukraine Yulia Svyrydenko and Minister of State for Foreign Trade of the UAE Dr Thani bin Ahmed Al Zeyoudi signed a Joint Statement on the conclusion of negotiations on the Comprehensive Economic Partnership Agreement between the Government of Ukraine and the Government of the United Arab Emirates. -
03.05.2024 | 16:59
| Section for Public and Mass Media Relations
The Government approved the Procedure for the use of funds to support projects with significant investments
The Government approved the Procedure for the Use of Funds Provided for in the State Budget to Provide State Support for the Implementation of Investment Projects with Significant Investments (over EUR 12 million). The relevant decision was made at a meeting of the Cabinet of Ministers of Ukraine on 26 April 2024. -
03.05.2024 | 16:58
| Section for Public and Mass Media Relations
We support business in Kharkiv region: entrepreneurs will be able to receive twice as much grant from the state for development, – Yulia Svyrydenko
To support entrepreneurs in Kharkiv and Kharkiv region who are constantly under rocket fire, the Government has doubled the amount of grants that businessmen can receive to start or develop their own business – up to UAH 500,000. The relevant decision was made at a meeting of the Cabinet of Ministers of Ukraine on 26 April. Some changes have also been made to the grant programme "Own Business" and its veteran component, aimed at improving the conditions for grant recipients.