Piraeus Bank, a subsidiary of the international banking group Piraeus Financial Holdings, supports the state program «Affordable Loans 5-7-9%». This position of the bank was declared and announced during a meeting for the banking community organized by the Independent Association of Banks of Ukraine.
According to Yannis Kyriakopoulos, Country Manager of Piraeus Bank in Ukraine, the program has been beneficial to the business and society. «A significant part of the small and medium sized companies were financed through the «5-7-9%» program which allowed them to continue having access to financing during the pandemic, build adequate inventories to avoid disruption in supplies as well as to reduce financial costs. As the pandemic continues, supporting of businesses via cheaper loans providing remains extremely necessary and relevant.»
During this period of Piraeus Bank operating in the program, 45% of the SME loan portfolio are loans issued under the program «5-7-9%». The customers’ profile of the client base of Piraeus Bank under this program comprise 79% of trade enterprises, 11% of business engaged in processing, 5% of agricultural enterprises and 5% of other industries.
«This does not mean that it should not be re-evaluated to reflect the new reality and the experience gained by operating it, but at that time the creation of the «5-7-9%» program was definitely the right response. This has been a standard practice in other European countries as well. Now, with the experience the government has acquired and the assessment of the status of the pandemic, certain filters may be applied to ensure an even more effective distribution of funds to the business through the «5-7-9%» program,» Yannis Kyriakopoulos added.
«Reducing of the interest burden has contributed not only to the preservation of jobs of our SME clients during the pandemic, but even to help to the creation of around 10% of more jobs in these companies. In return, the government will receive increased revenues from taxation that will partly compensate for the cost of the program,» Yannis Kyriakopoulos summed up.
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