The indicated amount – 123.5 million hryvnias – is subsidies and compensations provided for December 2019 – April 2020 for micro, small and medium enterprises operating in the territories of Donetsk and Luhansk regions controlled by the Ukrainian government through the FinancEast program, funded by the European Union.
The program provides for reimbursement of up to 50% of the cost of investment projects, namely – the purchase or lending of agricultural machinery, equipment and vehicles, installation, construction or renovation of premises.
“Donetsk and Luhansk oblasts now more than ever need help and investment for sustainable economic and social recovery. There is already a good start: since the beginning of the year, the FinancEast program within EU4Business has financed almost 70 investment projects of micro and small enterprises. And this figure will grow with the help of a grant provided by the European Union, “said EU Ambassador Matti Maasikas, Head of the EU Delegation to Ukraine.
The EU has allocated a grant of 9.5 million euros to implement the program. FinancEast started on December 20, 2019 and will last until 2022 or earlier, if all funds are used.
The program is implemented by the German State Development Bank KfW and the Entrepreneurship Development Fund within the project “Support of the European Union for Eastern Ukraine” and the EU initiative EU4Business.
The main partners are Oschadbank JSC and OTP Leasing LLC. Since the beginning of the program, Oschadbank has provided financing for the implementation of 24 investment projects in the form of loans amounting to UAH 66.5 million, of which the EU reimbursed UAH 32 million. OTP Leasing financed 43 investment projects totaling UAH 176.5 million, of which the EU reimbursed UAH 91.5 million.
The share of investment projects from Luhansk region was 58%, and from Donetsk – 42%.