On October 7, the "Financial Club" hosted a round table titled "The state program '5-7-9%' as the main driver of bank credit portfolios." Serhiy Shcheka, the Head of Piraeus Bank's central territorial department, was there to dive into some key points about how the program is being implemented. 

The event was held online, and among the speakers were also Yana Shumunova from Sense Bank, Anna Mukhina from TAScombank, and Misak Arzumanyan from Kreditwest Bank. The round table was moderated by Ruslan Chornyi, the Managing partner at the "Financial Club." 

During the discussion, the participants looked at how the program has been performing this year. They talked about the growth dynamics of credit portfolios, changes in the borrower profile, and the main challenges banks are facing. Serhiy highlighted that manufacturers are really taking advantage of the "5-7-9%" program right now. 

"We receive more requests from customer-manufacturers. For them, the conditions are currently the best, and the largest amounts can be issued specifically under this program. '5-7-9%' is indeed a locomotive for both the economy and bank lending," emphasized Serhiy Shcheka. "More requests are coming in for investment and energy efficiency projects. We provide loans for up to 5 years to purchase equipment for investment purposes." 

Serhiy also stressed the importance of making quick credit decisions, as this factor becomes decisive for many clients when all banks offer similar conditions. 

"Currently, the term for issuing a loan is the main factor a bank can attract clients. Financial conditions are pretty much the same across the market, so the term of decision-making on lending becomes the most crucial factor for attracting new clients," he believes.  

Another key point was the time it takes to review applications and finance borrowers, which can heavily impact business projects. Serhiy assured that Piraeus Bank is doing its best to minimize client waiting time. 

"We typically have a preliminary decision ready in about two days, which is around 70-80% aligned with what the credit committee will ultimately decide. Actual fund disbursement to the account usually happens within two to three weeks. The approval time for a specific loan application depends on the complexity of the credit analysis," Serhiy Shcheka explained. 

Participants also pointed out that current changes in the program could significantly affect how banks and borrowers operate. Serhiy Shcheka noted that this might lead to reduced financing volumes as the government starts tightening its budget for the program. 

"Now, the state's debt for compensation of interest on loans is 2-3 months. We understand that the government is beginning to cut back on this program and is focusing on financing only those clients and sectors it considers important," he said. 

The round table was streamed live, and if you missed it, you can still watch the recording on the FinClub YouTube channel and website.