Sumy Regional Military Administration and Oschadbank join forces to develop local business

A memorandum was signed today between Oschadbank and the Sumy Regional Military Administration (RMA) on joint efforts to increase the availability of financial support for business. Through this cooperation, the bank will expand the list of loan offers for entrepreneurs in the region, and the local authorities will contribute to reducing the cost of loans within their budget.

"Oschadbank did not stop supporting businesses and residents of the Sumy region during the hottest days of the full-scale war. This bank is the only one that provides financing in the dangerous "red zone" of our region. Therefore, the signing of this memorandum is a logical step in deepening cooperation between Oschadbank and the Sumy region," said Volodymyr Artyukh, Head of the Sumy Regional State Administration, at the signing ceremony.

"Because of the full-scale war, a significant number of companies in the Sumy region have suffered huge losses. Our task is to help businesses recover and continue to develop as much as possible. Today's consolidation of our cooperation confirms our joint efforts to make loans more affordable for the Sumy region entrepreneurs. Cooperation between local authorities and a leading state-owned bank has proven to be effective in many other regions: Oschad has signed similar memorandums with eight unified territorial administrations and four municipalities. We are confident that it will help entrepreneurs in the Sumy region to receive financial assistance even during the full-scale war," commented Sergii Naumov, Chairman of the Management Board of Oschadbank.

"Oschadbank is the No. 1 bank in the Sumy region in terms of financing local businesses. Oschad's share of the SME lending market in the region is 25%. We did not stop issuing loans even in the first months of the full-scale invasion. About 68% of our clients in the Sumy region are representatives of the agricultural sector. However, I am convinced that the agreement signed today will help many entrepreneurs to create and develop business in all sectors of the region's economy," said Natalia Butkova-Vitvitska, Oschadbank Management Board Member in charge of micro, small and medium-sized businesses (MSMEs).

Oschadbank has been the undisputed leader in financing the region's economy since the start of the full-scale invasion, with its loan portfolio growing by 29% since the beginning of the year. Currently, it stands at around UAH 1 billion, and Oschad ranks first among banks in terms of loan portfolio in the region.

The Sumy regional office of Oschad is an active participant in government programs to support the economy. Under the program "Affordable Loans 5-7-9%" in 2023 alone, Oschad issued 198 loans in the region for UAH 578 million. More than 415 grants worth over UAH 200 million were financed through the Oschad network of branches. The bank was also one of the first to join the export support program through the Export Credit Agency (ECA); currently, contracts worth UAH 113.2 million (in equivalent) have been insured in the Sumy region.

During 2023, the total loan portfolio of Oschad's MSMEs increased by UAH 4.5 billion and crossed the UAH 22 billion mark. The popularity of Oschadbank's loan offerings is rooted in its involvement in numerous initiatives to lower the cost of lending to entrepreneurs, be they local, regional, partner or global.

As part of its cooperation with international partners, the bank financed 6 farmers in the Sumy region for UAH 23.8 million, of which UAH 3.7 million was covered by grants (the second largest in the country in terms of funds allocated). This project is funded by the German government and implemented by the German federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with the Deutsche Sparkassenstiftung für Internationale Kooperation (DSIK) and the Entrepreneurship Development Fund. As part of the EU4Business Microbusiness Grant program, 63 regional entrepreneurs opened special accounts at Oschadbank and received grants under this program totaling UAH 7.8 million.

In addition, Oschad is constantly simplifying its lending processes: starting in March 2023, you can apply for a loan and receive a preliminary response within 24 hours remotely using the OschadBusiness service.