The Financial Stability Council’s (FSC) 1 June 2022 meeting focused on ensuring financial stability in Ukraine under martial law and prioritized the current progress and further development of a government program known as Affordable Loans 5%–7%–9%.
Affordable Loans 5%–7%–9% is playing an important role in maintaining business as usual and upholding Ukraine’s economic security as a prerequisite for financial stability. Since the war broke out, this program has also been the primary driver of the provision of credit financing to businesses.
Since martial law was imposed, banks have lent more than UAH 28 billion to nearly 8,000 companies and sole proprietors, including almost UAH 17 billion to agricultural enterprises for the sowing of crops. As of 27 May, the total volume of agreements signed under the program exceeded UAH 117 billion, with more than 42,000 businesses and sole proprietors having used that support. Banks are currently extending UAH 3-4 billion in business loans every week, a number that is constantly growing.
FSC members upheld the Ministry of Finance’s initiative to update, jointly with the Business Development Fund, plans to develop further public programs that promote lending to ramp up support for Ukrainian businesses and properly meet the commitment to provide interest rate compensation to banks.
The following FSC members participated in the meeting: Kyrylo Shevchenko, NBU Governor, Serhii Marchenko, Minister of Finance of Ukraine, Svitlana Rekrut, Managing Director of the DGF, Ruslan Mahomedov, Head of the National Commission on Securities and Stock Market, Yuriy Heletiy and Yaroslav Matuzka, NBU Deputy Governors, and Yurii Drahanchuk, Deputy Minister of Finance of Ukraine for European Integration. Also in attendance were Kateryna Rozhkova, NBU First Deputy Governor, Sergiy Nikolaychuk, NBU Deputy Governor, Oleksii Shaban, NBU Deputy Governor, and Maksym Libanov, Member of the National Commission on Securities and Stock Market, and Olha Bilai, Deputy Managing Director of the Deposit Guarantee Fund.
The FSC was established by a presidential decree in March 2015. The FSC provides a forum for the professional discussion of systemic risks to domestic financial stability.