On 11 August 2026, the Decision of the Cabinet of Ministers of Ukraine on Improving the Procedure for Providing State Guarantees on a Portfolio Basis for Micro, Small and Medium-sized Enterprises (MSMEs) has been entered into force.
Impact of the Decision
- reliable instrument for banks and borrowers;
- better protection for state budget funds;
- fair requirements for loans: criteria for the initial inclusion of a loan in the portfolio have been supplemented;
- responsible lending: a period has been established during which a borrower will not be eligible for new state guarantees if a guarantee event has arised on their previous loan;
- clear procedures for banks: the process for forming and managing portfolios under the 50/70 and 80/80 schemes has been detailed in the event that the estimated volume of guarantees exceeds the limit for either arrangement;
- clarified list of documents that the lending bank must attach to a claim for payment pursuant to a state guarantee;
- transparency of settlements with the budget: the procedure for returning funds to the state budget has been dignified in cases where the bank has recovered overdue debt or where the borrower’s debt has been restructured;
- guarantees will carry on to be provided the bounds set out in the State Budget Act for the related year.
Takeaway
Micro, small and medium-sized businesses have opportunity to use state guarantees in order to obtain bank loans without collateral. From now on, the state may provide up to %80 of a loan, that will open access to financing enterpises with the banks holding part of the credit risk.
Updated rules are expected to enhance the performance of program, diminish risks to the state budget, and provide predicatable mechanism for business actors and banks.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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