JSC OTP BANK has received a second grant from the USAID Business Resilience Investment Project to expand access to finance for micro, small and medium-sized enterprises. More than 100 companies have already been financed under the first tranche. The new tranche of $2.76 million will bring the total grant amount to $4 million. The funds will be used to offset part of the interest rate for borrowing companies.
The grant program stipulates that the bank will lend to businesses at an interest rate of 9.9% per annum in the first year of the loan agreement. The difference between the rate for clients and the market rate will be compensated by grant funds. In the second and subsequent years, clients will pay interest on the use of credit funds at the rate of UIRD3m + 5% per annum (UIRD3m is the Ukrainian index of rates for three-month retail deposits).
Micro, small and medium-sized enterprises with an annual income of up to EUR 50 million and up to 250 employees belonging to one of the following target groups will be able to receive financing on favorable terms from OTP Bank
– relocated businesses or those affected by military operations
– companies belonging to critical economic sectors (agricultural production, production of building materials, electrical devices, transportation, logistics, processing, etc;)
– companies co-owned by women.
“The project started cooperation with OTP Bank under this grant program in September 2023. The results of our partnership are significant. During this time, more than 100 companies have received financing from the bank for almost UAH 550 million at a compensated interest rate. The objectives of the second stage of the program are even more ambitious – to provide access to financing and compensate the interest rate to more than 330 enterprises. We believe that such business support will contribute to the recovery of Ukraine’s economy, which is suffering tremendously from the war,” said Raphael Jabba, USAID Business Resilience Investment Project Chief of Party.
The maximum loan amount that a company or a united group of companies can receive under this program is UAH 20 million, and the minimum is UAH 1 million.
The grant program also applies to factoring agreements, under which the bank’s clients can receive up to 90% of the cost of supplies in the amount of UAH 2 million to UAH 20 million.
Special conditions will apply to agricultural producers if they use the funds received under the grant program to purchase products from OTP Agro Factory’s partners.
“The cooperation between OTP Bank and the USAID Business Sustainability Investment Project continues, and it means a lot to us. The bank has proven to be a reliable and efficient partner, time-tested, and one that fulfills its obligations flawlessly. The grant is extremely important for Ukraine and its economy, which is under incredible pressure in the context of the war. Thanks to this program, businesses in critical industries will receive much-needed support, companies affected by the war will be able to recover, and women entrepreneurs will receive an additional incentive to develop their business,” said Volodymyr Mudryi, CEO of OTP Bank.
During the first stage of the program, which began in 2023, more than 100 Ukrainian enterprises were provided with financing. Among them were companies from the agricultural sector, businesses dominated by women in the management team, as well as enterprises from critical sectors of the economy and those that were forced to relocate production due to the war. In addition, as part of the program, representatives of MSMEs used factoring services on favorable terms.
About the USAID Project “Invest for Business Resilience”
The USAID Investment for Business Resilience (IBR) Project is a five-year program implemented by DAI Global that supports systemic changes in Ukraine’s economy and increases the supply of financing available to Ukrainian businesses. The IBR project aims to transform the country’s financial sector into a well-functioning and competitive market that meets European Union standards and is integrated into international financial systems, while directly providing financing to businesses to ensure sustainable economic growth in Ukraine.
For more information on USAID IBR’s activities in Ukraine, please visit the USAID IBR Facebook page: https://www.facebook.com/IBRUAproject
About OTP BANK
JSC OTP BANK is one of the largest Ukrainian banks with foreign capital, which is a recognized leader in the country’s financial sector. It has been present on the market since 1998 and has a strong reputation as a socially responsible, reliable and stable structure offering European quality services to its customers. The bank provides a full range of financial services to corporate and private clients, as well as small and medium-sized businesses.
Since 2019, according to the decision of the NBU, OTP Bank has been included in the list of systemically important banks of Ukraine, which have a significant impact on the development of the country’s financial system.
In Ukraine, JSC OTP BANK is the flagship of the OTP banking group registered by the National Bank of Ukraine, which also includes OTP Capital AMC LLC, OTP Leasing LLC, Freefly non-state pension fund and OTP Pension open pension fund.
The consulting company of the Chairman of the Board of the Amber Business Association of Ukraine won
On Friday, 16.08.2024, an online auction was held for the sale of a special permit for the amber-bearing Polyana field (geological exploration with pilot industrial development and further extraction, for 5 years) with an area of 44.63 hectares in Rivne region.
The bidding started at UAH 4,641,520. Three bidders competed for the lot, with the final bids as follows:
Mykola Kotniuk is the head of the Amber Business Association of Ukraine, which unites 24 participants in the amber industry.
Is the Polyana site worth the UAH 91 million investment in a 5-year special permit? NADRA.INFO asked the winner of the auction.
“Our specialists will conduct a survey of the site, analyze the available geological information, and obtain the conclusions of the legal department on the possibility of obtaining a temporary land plot. After that, the investors will make the final decision on the payment for the lot,” said Mykola Kotnyuk.
If the winner does not buy the special permit, he will lose UAH 2 million of the guarantee fee, and the right to buy it will go to Com Resource LLC.
It should be noted that this was the second attempt by the State Service of Geology and Subsoil of Ukraine to find an investor for the Polyana field. At an auction in July, the lot was valued at UAH 35 million, but the special permit remained unacquired. Then, another company of Mykola Kotnyuk, Ukrainian Amber LLC, offered UAH 22,000,001 for the Polyana plot.
Kom Resurs LLC also participated in the first auction, valuing the lot at UAH 4,710,000. In July, the company was solely controlled by Ivan Debeliy (Antonov, Kryshchenko and Vertyporokh became owners of the company in August.
AMBER, AUCTION, State Service of Geology and Mineral Resources
In Ukraine on Monday, August 19, without precipitation; only in the afternoon in the western regions in some places short-term rain, thunderstorms, reports Ukrhydrometcenter.
The wind is predominantly southeastern, 5-10 m/s.
The temperature at night 15-20 °, on the seashore up to 23 °; in the afternoon 29-34 °, in the southern and central regions of strong heat 35-37 °; in the Carpathians 23-28 °.
In Kiev on Monday without precipitation. No precipitation. The wind is predominantly southeastern, 5-10 m/s. The temperature at night is 18-20°, during the day 32-34°.
According to the Central Geophysical Observatory named after Boris Sreznevsky. Borys Sreznevsky in Kiev on August 19, the highest daytime temperature was 37.8 in 1946, the lowest nighttime temperature was 7.4 in 1893.
Tuesday, August 20, in Ukraine without precipitation; only in the western regions, in the afternoon and in Zhytomyr region, in some places short-term rain, thunderstorm.
Wind of variable directions, 3-5 m/s.
The temperature at night 15-20°, on the seashore up to 23°; in the afternoon strong heat 35-38°, in the western regions 30-34°, in some places 25-30°.
In Kiev on Tuesday without precipitation. Wind of variable directions, 3-5 m/s. The temperature at night is 18-20 °, in the daytime strong heat – 35 °.
The charity fund “Okhmatdet – Healthy Childhood”, which collected money for the restoration of the National Children’s Specialized Hospital (NCHS) after its destruction by a missile attack on July 8, is not going to transfer it to the accounts of “Okhmatdet”, said the director of NCHS Volodymyr Zhovnir.
“Since morning we have learned that BO “Charitable Foundation ‘Okhmatdet – Healthy Childhood’, does not plan to transfer funds to the account of VATB ‘Okhmatdet’. That is, as of August 16, 2024 UAH 378 million remain in the account of the BO “Charitable Foundation ‘Okhmatdet – healthy childhood’,” he wrote on Facebook on Friday.
According to Zhovnir, to raise funds, the details of the fund were made public on the pages in social networks of the hospital and its employees, in the media, as well as on the websites and pages of public authorities, public organizations and just concerned citizens.
“The fact that the fund contains in its name the name of Okhmatdet NDSB became for the benefactors an additional confirmation that the collected money will be used for the intended purpose and in no case will go for purposes unrelated to the recovery process”, – emphasized Zhovnir.
He also noted that no one had any doubts about the honesty of the fund, as they had always interacted normally with the hospital in the past. However, he argued, starting with the first public scandals and requests to transfer money, communication with the organization began to deteriorate.
“We are deeply shocked by the foundation’s decision. The hospital’s name is synonymous with responsibility, professionalism and hope. In my opinion, neither VATB nor the foundation, which bears the name “Okhmatdet”, has the right to let down Ukrainian society. However, the participants of the foundation (among whom there is not a single NDSB employee!) decided otherwise,” he said.
Zhovnir demands from the charity organization to transfer the money collected for the restoration of “Okhmatdet” to the hospital’s accounts and says that they are currently considering the possibility of breaking legal relations with the foundation because of the fact that their actions are “dishonest, as well as probably fraudulent”.
Meanwhile, an official statement from the BF says all funds raised for the hospital’s rehabilitation will remain in its accounts.
“The key thing is that all funds collected for the restoration of Okhmatdet after July 8th remain on the account of the Okhmatdet – Healthy Childhood Foundation. The fund is ready to pay for any urgent need of the hospital: medical equipment or restoration of buildings damaged as a result of the Russian attack. But we have not received a single letter from the Okhmatdet hospital about any such targeted need,” the website reported on Friday.
Representatives of the fund are also asking for legal grounds for transferring funds to treasury accounts without assignment.
“The Ministry of Health in its demands refers to Article 5 of the law “On Charity and Charitable Organizations.” However, this article of the law does not provide a legal mechanism for transferring funds collected by a benefactor to any state or other accounts without grounds. If we fulfill the requirement of the Ministry of Health to transfer the funds, we will grossly violate the law,” the statement says.
To confirm its transparency, the foundation invites the First Lady of Ukraine, Olena Zelenska, to become a member of its nabsoviet board to oversee and control the implementation of the reconstruction of the Okhmatdet hospital after the Russian terrorist missile attack.
Director General of the National Children’s Specialized Hospital “Okhmatdet” Volodymyr Zhovnir has been suspended from duty, Health Minister Viktor Lyashko said.
“Zhovnir is suspended from his duties until the completion of inspections by the National Police of Ukraine, other law enforcement agencies and a commission of the Ministry of Health,” Lyashko wrote in Telegram on Saturday.
“About further decisions will be reported additionally, including personnel decisions. My position – the acting should be a person from the heads of departments, who will receive the greatest support of colleagues. Now I am holding consultations,” he added.
According to the Minister, the facts related to the restoration of buildings Okhmatdet after the missile attack and the actions of the Charitable organization “Charitable Foundation ‘Okhmatdet’ – healthy childhood” are being studied by the National Police, there is a pre-trial investigation, investigation of the NABU and internal inspection of the Ministry of Health.
The National Bank of Ukraine (NBU) has granted PJSC Insurance Company “Grandvis” (Chernihiv) permission to exit the market by executing the insurance portfolio and agreed on a plan for such exit, the regulator said on its website on Friday.
“After the completion of the procedure of exit from the market through the execution of the insurance portfolio “Grandvis” is obliged to apply to the National Bank with an application for annulment of the license for insurance activities,” the publication said.
It is specified that such a decision of the Committee on supervision and regulation of non-banking financial services markets of the NBU adopted on August 14. This was preceded by the decision of the company’s shareholders to withdraw from the market at the general meeting on August 9.
According to the regulator, in the first half of 2024, 86% of the insurance portfolio of IC “Grandvis” was formed at the expense of payments under hull insurance contracts, 8% – liability insurance and 4% – health insurance.
It is noted that the volume of insurance premiums of the company for January-June amounted to UAH 1,24 million, and formed insurance reserves – UAH 574 thousand. The NBU emphasized that the share of the insurer on the above-mentioned premiums in the market is 0.01%. For six months of 2024 IC “Grandvis” has paid out insurance indemnities in the amount of UAH 179 th.
IC “Grandvis” has been working in the insurance market since 1995. It specializes in risky types of insurance. The authorized capital of the company is UAH 14,3 mln.
As it was informed, in November 2023 the NBU has applied to PJSC IC “Grandvis” a measure of influence in the form of temporary suspension of licenses for activity on rendering financial services in the sphere of insurance.
The reason for the decision was the insurer’s failure to comply with the decision of April 24, 2023 on violation of accounting requirements and non-compliance with solvency and capital adequacy norms.
