OTP BANK constantly expands opportunities of loan programs for business - Alla Biniashvili
OTP BANK JSC uses various mechanisms in order to make credit products available and interesting for as many business clients as possible. Told member of the Management Board Alla Biniashvili during a speech at an international industry conference Grain Ukraine.
She reminded that since full-scale war, corporate portfolio of Ukrainian banks in total decreased by 20%, so now banks are using different methods for restoration of lending to the economy.
According to Alla Biniashvili, systematical cooperation with international organizations, who offer risk-sharing or grant programs for businesses, is an important advantage of OTP BANK. In particular, with EBRD, with which Bank has made an unfunded agreement on the distribution of portfolio risk for a total amount of EUR 120 million and with USAID project “Investment for Business Resilience”, which allowed to finance Ukrainian enterprises for UAH 500 mil with a discount rate of 7%.
"We carefully study the risks as a responsible bank, and at the same time we understand the current situation, we see the conditions under which the business operates. And thanks to risk-sharing with the EBRD, we can finance various clients. As part of cooperation with the USAID Project "Investments for business sustainability", the Bank provides loans at preferential rates. So we have opportunities, and this is our distinct advantage," - Alla Biniashvili emphasized.
She noted, that OTP BANK actively applies positive international experience throughout its activities and had created in 2017 a unique scoring project “Agro Factory” due to cooperation with International Financial Corporation (IFC).
“Back than we studied pains and fears of small companies, in particular, they wanted to receive solutions fast, submit a minimum package of documents etc. We satisfied all their requirements within “Agro Factory”. We make decision during one working day and give funds minimum in a week, because after all funds, providing is a dance for two and there is a need to obtain certain documents. For agricultural producers, we offer loans of up to UAH 5 million in general without collateral and up to UAH 20 million - under the collateral of financial agrarian receipts," - said the member of the Management Board
She emphasized that OTP BANK successfully cooperates with well-known international and Ukrainian companies within the “Agro Factory” project, in particular with producers of seed material, plant protection products, fertilizers, etc.
“If the Bank's client buys goods from them, they compensate us difference in the rate, so we can provide a very interesting loan offer at 0.1%, which is difficult to find in the normal market. Agrarian business is in the center of our attention, and 50% of loans in the total loan portfolio of OTP BANK are the financing of the agricultural industry," - she noted.
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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.
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