30 November 2013 Federation of Employers of Ukraine. Development of Enterprise 

FEU Knows How To Reduce Lending Rates for Business

The Federation of Employers of Ukraine will offer the Government a package of measures to reduce lending rates for business to 8-9% per annum. This was stated by the President of the Federation of Employers of Ukraine Dmitry Firtash during the meeting with leaders and business owners of Ternopil region.
 
“We are preparing a comprehensive proposal for reducing the cost of loans in hryvnia to 8-9 % per annum, and will submit it to the government soon. Addressing the issue of cheap loans for a long period is a key to development of small and medium businesses”, said Dmitry Firtash.
 
At the same time, according to the FEU President, a significant proportion of purchases of goods for state funds must be carried out from Ukrainian small and medium enterprises. “We're not discussing the size of share. For example, in the U.S. and Japan 70% of procurement for state funds are made from national manufacturers. Implementation of such practices in Ukraine will give the opportunity to develop small and medium businesses,” said Dmitry Firtash. The FEU President noted that such measure would develop the domestic market and create new jobs.
 
The FEU President noted that state procurement contracts might become    floating charge for businesses. “Today, small businesses are not always able to get loans because manufacturers do not have floating charge. Therefore, we want state procurement contracts to become the pledge for credits”, said Dmitry Firtash. He noted that the implementation of this package of measures would significantly reduce banks’ risks and cost of loans.