The state program Affordable loans 5-7-9%, despite recent changes with the narrowing of the working capital financing limit to UAH 5 million, is still not sufficiently focused on helping businesses that really need it, director of the NBU's financial stability department Pervin Dadashova says.

"The current terms of the program still do not provide sufficient focus on supporting exclusively businesses that in dire need of it. There remain many areas of funding that arose in response to the realities of the martial law and were needed at the height of the 2022 crisis, but are not a priority now," she expressed this opinion in an interview with Interfax-Ukraine.

"For example, the limit on loans for financing working capital was recently reduced by more than ten-fold - to UAH 5 million. This is a significant change, but most loans to small and medium-sized enterprises for replenishing working capital at 5-7-9% are just and was provided in the amount of UAH 3-5 million, so in this part the program remains comprehensive," the director explained.

According to Dadashova, since economic conditions are now better than in past years, there is no need for such comprehensive support. The current goal is to narrow support under 5-7-9% only for investment projects, projects in priority areas, she indicated.

One of the biggest problems of the program is the lack of funds for financing and the emergence of government debt to compensate interest rates to banks. "Like a dog after a tail, we run after this debt - every year we pay off the debts of the previous period, but create new ones," the director noted.

Dadashova added that for current payments on the existing loan portfolio of 5-7-9%, without a reserve to cover the debt and growth of the portfolio, the budgetary expenses will be enough "back to back."

She believes that over the planning horizon of the program for two to three years, no debts should arise due to the focus of the program, the parameters of rates and the planned volumes of the loan portfolio.

According to the director, the only question is how quickly departments can implement the desired changes to the program.