18 September 2012  Promotion of Enterprise. Bukovyna Fund

Bukovyna Fund Approves the Commitment of First 1 Million UAH

The total of 1 million UAH to be spent for the implementation of six projects proposed by Chernivtsi entrepreneurs has been approved for distribution at Bukovyna Small and Medium Enterprise Fund. Three of the qualified proposals talking about building business from scratch will receive the total of 240 thousand UAH. The remaining three projects involve the expansion of the existing enterprises for which the Fund will issue three-year loans against a 12-percent annual interest rate for the total of 790 thousand UAH.
 
The projects were presented today in Chernivtsi in the presence of Mr. Dmitry Firtash, President of the Federation of Employers of Ukraine, Mr. Mykhailo Papiev, Governor of Chernivtsi region, authors of the proposed business ideas and over 80 owners of local small and medium enterprises.
 
Speaking before the gathering, Mr. Firtash stressed that small and medium enterprise funds ought to be created across the whole of Ukraine. “What makes these funds so important is the fact that they help many entrepreneurs make the first step which is always the most critical thing,” said he.
 
Mr. Firtash further noted that funds of Bukovyna kind are capable of catalyzing the networking of enterprise-minded people. “These people will be creating new jobs and perhaps they will eventually become investors in other funds. I would encourage business people in each region to lend a helping hand to small and medium entrepreneurs, to business rookies, to young enterprise enthusiasts. Helping them is something that will make you stronger. After all, as enterprise evolves, the middle class will grow and so will the domestic market,” explained Mr. Firtash.
 
Chernivtsi region Governor emphasized in his speech that Bukovyna Fund addresses a painful issue of financing in which banks at the moment cannot be a helpful tool. “This is the money enabling a business startup and offering credit resources for its further development. Banks today cannot be helpful in achieving these objectives unless you have a lot to collateralize or unless you can afford prohibitively high interest rates,” said Mr. Papiev.
 
The FEU President called the recently established fund a good business ideas generator. “I have made a decision to additionally invest another 5 million UAH in the Fund,” announced Mr. Firtash. Thus, the total capital in the Bukovyna’s possession equals 8 million UAH at the moment.
 

NOTE

The investment Fund Bukovyna was set up upon an initiative of the President of the Federation of Employers of Ukraine Mr. Dmitry Firtash subsequently joined by another four Chernivtsi business people: Ms. Stella Stankevych, Chairwoman of the Board of Directors, ‘Trembita’ company; Mr. Vyacheslav Dobrovolsky, Preseident, ‘TechnoPlus’ company; Mr. Victor Sidliar, CEO, ‘Chernivtsi mashzavod’; and Mr. Ivan Semeniuk, CEO ‘Rodnichok’ company.
In three months of the Fund’s operation, 76 business proposals seeking financing were submitted.