Over 100 MSMEs will be able to receive financing from OTP Bank under unique conditions within USAID program framework
More than 100 micro, small and medium-sized businesses (MSMEs) small and medium-sized businesses will be able to receive financing from OTP Bank under unique conditions within the framework of the USAID Financial Sector Reform Activity. This was announced by Pavlo Huzyr, the head of alternative sales channels projects of OTP Bank`s "Agrofabrika" at a joint webinar with the "Agrianalityka" company, which was held live on Facebook.
Under the terms of the joint program with USAID, since October OTP Bank offers a new product – loans for micro, small and medium enterprises with up to 250 employees to replenish working capital for carrying out the main activity with interest rate compensation at the expense of a grant from USAID down to 7% p.a. for 12 months.
As P. Huzyr reported, the program provides lending with a compensated rate to relocated businesses, critical sectors of the economy, enterprises affected by russian aggression, and enterprises with a significant share of women in the ownership structure. "The key industry of Ukraine - agribusiness corresponds the category of "critical industry", so it becomes a key consumer of the program. Therefore, agricultural producers can get financing on these unique terms," he emphasized.
Also OTP Bank introduced an innovative product - a combination of USAID grant conditions and private partnership with the main suppliers of commodity resources for the sowing campaign, including the main market players in the supply of plant protection products, seeds and fertilizers, in one offer. As P. Huzyr noted, "this offer is unique, because agricultural producers can use it to issue financing for the supply of products from the bank's partners at an annual rate of 0.1% p.a. for a period of 12 months."
According to him, the program becames popular among clients: the bank has received many requests for financing, many requests are in progress, and the first loan agreements have been signed.
P. Huzyr also informed that within the framework of the joint program with USAID there is a possibility to provide factoring financing at the lowest rate on the market - 7% p.a., also due to compensation at the grant expenses. This will be an effective financing solution for replenishing working capital and covering cash gaps for large trade chains, retail, pharmaceutical, etc., which work with advance payments, including suppliers of commodity resources for agricultural producers on the terms of deferred payment.
"These are the best pricing conditions for financing small and medium enterprises on the market. For the time being, the total amount of factoring financing within the specified program is planned to reach UAH 100 mio, financing in the form of a revolving credit line - UAH 430 mio. But taking into account the demand and efficiency in the utilization of the above-mentioned limits, we will turn to USAID with proposals for the prolongation of the co-operation program," the banker emphasized.
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.