The NBU simplified the banks lending to small business

НБУ упростил банкам кредитование малого бизнеса

The NBU has simplified the lending banks Popov

Changes, in particular, it is envisaged that the evaluation Popov banks will be able to use a portfolio approach – the rule will apply to all loans of up to UAH 5 million.

The national Bank adopted a resolution which introduced a new approach to the assessment of credit risks of physical persons-entrepreneurs when making decisions about granting loans. About it reports a press-service of the NBU.

The national Bank reminded that in the beginning of the year, the regulator increased the limit for portfolio assessment of loans to legal entities – economic entities, with 2 million UAH to 5 million UAH.

The adopted amendments provide that for the assessment of natural persons-entrepreneurs, the banks will also be able to use a portfolio approach.

It is planned to extend this rule to all loans Fopam to 5 million UAH. In practice, this means that a key factor in risk assessment of borrowers is timely repayment of the debt. While borrowers avoid delinquencies on its obligations, provided them with loans are the quality.

On such credits banks will determine the minimum credit risk.

In NBU believe that a simplified approach to the evaluation of credit risks of physical persons-entrepreneurs will also simplify the formal procedures of the credit administration. In General, this will enhance the ability of banks to lend to SMEs and entrepreneurs easier access to credit.

In addition, there is a separate form acceptable to reduce credit risk collateral in the form of rights to trust property. Appropriate changes are determined by order No. 147 dated December 5, 2019. They come into force on 7 December 2019.

Earlier, the Cabinet announced the rules for granting loans to businesses. The Minister of Economics Tymofiy mylovanov noted that the use of funds will follow the banks and individual Agency.

Recall, Russian President Vladimir Zelensky has announced a program to provide loans to start a business.

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