Oschadbank and Vinnytsia City Council continue to reduce the cost of loans for local businesses

Representatives of Oschad and Vinnytsia City Council signed an agreement to continue cooperation in 2024, which provides for partial compensation of interest on loans to small and medium-sized businesses. The amount of reimbursement in the first year is 75%, in the second year - 50%, and in the third year - 25% of the interest rate. The program is funded by the budget of the Vinnytsia City Territorial Community (VCTC) and has been in place since 2018.

"Partial compensation of interest on business loans is a good initiative of the Vinnytsia City Council, led by the mayor and the team that was actively involved in the launch and implementation of this program. We sincerely welcome such projects, as we understand that today's economic challenges are intensifying, and businesses need help. Oschadbank's goal is to create favorable conditions for the development of Ukrainian entrepreneurship. We strive to provide businesses with a wide range of available financial instruments so that they can save and create jobs, pay taxes, and not only survive but also develop in difficult times," said Natalia Butkova-Vitvitska, Member of the Management Board of Oschadbank responsible for MSME.

"The main goal of this mechanism is to reduce the cost of borrowed funds for business development, deshadowing the city's economy, creating new jobs and, as a result, developing small and medium-sized businesses. In the period from 2018 to 2023, Oschadbank issued 15 loans totaling UAH 17.38 million. During the same period, the participants of the compensation procedure received UAH 1.75 million, which enabled them to purchase new equipment and create additional jobs. It is pleasant to note that for some borrowers the compensation covers 80% to 100% of loan payments (loan interest)," commented Andriy Ocheretnyi, Deputy Mayor of Vinnytsia.

The updated agreement increased the maximum amount of a term loan or credit line from UAH 1 million to UAH 5 million. VCTC's budget for 2024 includes UAH 4 million for partial interest compensation for the development of business entities, in particular for energy saving measures.

"We have already received requests for loans, and we are ready to continue to help businesses after signing this additional agreement. We are grateful to Vinnytsia City Council for their cooperation in such a difficult time. We already have three business representatives who have received loans. They are candidates for compensation from the city council. Among them is an agricultural producer who took out an investment loan to develop his farm. In total, since January 1 this year, we have financed 11 business entities for a total amount of about UAH 17 million," said Yuriy Bokovyi, Head of Vinnytsia Regional Department of Oshchadbank.