Press conference "Presentation of the state support program "Affordable Factoring"" in Kyiv

The Ministry of Economy and the Ministry of Finance officially launched the Affordable
Factoring Program designed to provide working capital to MSMEs in the framework of 5-7-9% State Program to
support Ukrainian entrepreneurs. The Business Development Fund (BDF) has been appointed operator of the
Affordable Factoring Program and will implement the Program through partner banks.

Financial support to business entities under factoring contracts will provide for the compensation of the interest rate
for factoring up to the level of 13% per annum. Factoring will be provided by an authorized factor to a business
entity in the amount of up to 95% of the receivables, but the amount of financing may not exceed UAH 150 million
including the financing obtained under Affordable Loans 5-7-9% and Affordable Financial Leasing 5-7-9%
Programs.

“The launch of the new Affordable Factoring State Program will become yet another important tool to support and
develop micro-, small- and medium-sized businesses in Ukraine during the war. Thanks to this Program,
enterprises will be able to cover their daily expenses, reduce the risk of non-payment by counterparties and
strengthen the resilience of the entire supply chain. The Business Development Fund has many years of
successful experience in implementing state programs to support businesses, including in times of crisis, so I am
confident that the Ukrainian Affordable Factoring is in good hands”, – said Yuriy Draganchuk, Deputy Minister of
Finance of Ukraine on European Integration, Chairman of the Council of the BDF, in his speech during the
presentation.

The Affordable Factoring Program is a part of the effort to advance utilization of factoring and offer a solution for
working capital needs of MSMEs in Ukraine. This is extremely important especially during the war and recovery
period.

"Affordable Factoring opens opportunity for Ukrainian producers, primarily small and medium-sized ones, to enter
contracts with long payment delays. This product should first of all help Ukrainian businesses to cooperate more
effectively with retail chains," said Andrii Strashnyi, Head of Financial Policy Department, Ministry of Economy of
Ukraine.

The USAID Financial Sector Reform Activity is cooperating with the BDF to promote business awareness of
factoring and to popularize it as a convenient financial service for MSMEs. “The level of understanding and use of
factoring as a service among entrepreneurs has been quite low in Ukraine. Unfortunately, factoring has been
confused in the business community with collection which is completely different. We are talking about invoice or
receivables financing which is essential for cash flow,” said Yulia Vitka, Deputy Chief of Party, USAID Financial
Sector Reform Activity.

The Business Development Fund has concluded cooperation agreements with five partner financial institutions:
Credit Agricole Bank, ОТP Bank, TAScombank, COMINBANK, Globus Bank and MTB Bank.

“Thanks to the Affordable Factoring Program, in cooperation with partners and the Government of Ukraine, the
Business Development Fund is expanding the array of financial instruments for Ukrainian entrepreneurs, which is
especially important for national manufacturers. In this way, they will be able to significantly improve their liquidity to
ensure the sustainability and development of their business, as well as to retain jobs”, – emphasized Andriy Gapon,
Executive Director of the Business Development Fund.

More information about the Affordable Factoring Program is available on the official website of the BDF.