Ukrainian banks as of Wednesday issued 288 thousand cards, which will be charged compensation under the state program “National cashback”, said Deputy Prime Minister – Minister of Economy of Ukraine Yulia Sviridenko.
“For two days our partner banks (of the state program “National Cashback”) – it is, in fact, all the largest banks in our state, issued a total of 288 thousand cards,” she said on the air of the national telethon ‘United News’ on Wednesday.
According to Sviridenko, more than 600 manufacturers have already joined the state program, registering 63 thousand goods in the system.
“At the time of the launch of the program, nine retail chains have already credited cashback, somewhere around 40 more are in the process of joining,” the first deputy prime minister said.
She recalled that the cashback program started on September 2 in beta testing mode, which is tentatively to last about a month.
As reported, the Cabinet of Ministers of Ukraine at a meeting on August 20 approved the procedure for granting “National cashback”, according to which Ukrainians will be able to receive compensation for 10% of the cost of goods purchased by them. The maximum amount of cashback is 3 thousand UAH/month, the funds can be spent on medical and utility services, sports, movies, train tickets, donate to the AFU or buy war bonds.
JSC OTP BANK, as part of a joint program with the European Bank for Reconstruction and Development (EBRD), offers small and medium-sized enterprises (SMEs) investment loans to support their business in times of war with the possibility of compensation for part of the costs financed by the Bank’s credit facilities. The parties have recently signed a new cooperation agreement that will allow OTP Bank to provide EUR 120 million of financing to the Ukrainian private sector with the participation of the EBRD through a 50% credit risk coverage instrument on a portfolio basis.
“This program is, in fact, a successful expansion of the previous cooperation with the EBRD, which was in great demand among our clients, and is aimed at supporting such critical industries as agriculture, production and trade of essential goods, logistics services and others. Thanks to this lending instrument, companies are able to continue their operations, develop and ensure the availability of goods and services to the population,” said Natalia Kondratchuk, Head of Corporate Finance Department of OTP Bank.
“Such loans under portfolio guarantees can be used to support long-term investments of SMEs in green technologies (modern agricultural machinery and other energy-efficient equipment, solar panels for power plants to meet their own needs) that meet the standards of the European Union and will help increase the competitiveness of enterprises in domestic and foreign markets. After the investment project financing is implemented, SME borrowers will be able to apply for investment incentives (cash compensation, cashback) provided by the EU under the EU4Business initiative.
The amount of compensation depends on the type of assets acquired and the complexity of the project and can be up to 15% of the amount of loan funds received. Reimbursement is made in euros after documentary evidence of the intended use of funds by the SME borrower and verification of documents by the European Bank for Reconstruction and Development.
The signed agreement is a continuation of the cooperation between the EBRD and OTP Bank in supporting Ukrainian business, which began in 2022. One of the components of this cooperation is the implementation of a program to increase the competitiveness of small and medium-sized enterprises in the EU’s Eastern Partnership countries. Since the beginning of the full-scale war, the total amount of new financing from Ukrainian banks, supported by similar EBRD guarantees, reached about EUR 900 million as of the end of 2023.
The state cashback program “Buy Ukrainian” is 100% ready, but will be presented after March 28, Deputy Head of the Presidential Office Rostyslav Shurma said at KIEF TALKS on Friday.
“I’m not going to tell you the details of this program right now, not because it doesn’t exist. It is 100% complete. I would tell you if today was March 28. If there were a couple of international meetings where questions could arise,” Shurma said.
Outlining the basic principles, he pointed out that people will receive “decent cashback” for buying local goods. At the same time, the methodology by which a product can be classified as a local product has also been developed.
Mr. Shurma clarified that the program provides for mandatory cashless payments with a fiscal check. In addition, the seller must be a taxpayer under the general taxation system.
As reported, President Volodymyr Zelenskyy announced the launch of the Buy Ukrainian cashback program, under which Ukrainian citizens will be able to receive compensation for part of the payment for Ukrainian goods and services.
“For the purchase of certain types of goods and services made in Ukraine, Ukrainian citizens will be able to receive a refund of part of the money on a special card,” the president explained.
In February, First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko said that it would take about three months to develop the documents necessary to implement the program.
Earlier it was reported that the state budget for 2024 envisages UAH 45 billion for various business support programs, but there is no cashback program among them. In addition, according to media reports, the government’s debt under the largest of the state programs – partial compensation of the 5-7-9 interest rate – is currently about UAH 7 billion.
Ukraine’s trade deficit in 2023 amounted to $37.7 billion, mainly due to a widening of the negative balance of trade in goods: both due to a decrease in exports and an increase in imports.
