$-COMMERCIAL LOANS: REALITY AND PERSPECTIVES

Small and medium business development in Ukraine is growing steadily. Commercial structures moving to another proficiency level often need supplementary financial funds. One of solutions in a similar situation is to obtain a credit with the bank.

We are discussing the question of lending process for small and medium  enterprises (SMEs) with Sergey Naumenko, Deputy Chairman of the Board at Ukrgasbank.

Sergey Gennadiyevich, could you specify, what are the characteristics of SME classification with Ukrgasbank?

In our opinion, there is no universal scale. Each bank must proceed with the clients’ classification independently.

Currently our bank refers  a company with gross income of up to UAH 25 million to SME. Still, the terms of “medium business” and “small business” are segregated. Lending to small companies and entrepreneurs in the nearest future will be accomplished through a retail network by means of bulk selling of standard and the most popular products.

How important is SME loans  for your bank?

Servicing this segment in our bank has been selected as one of the top priority products. As of October 1, SME loans  represent approximately 50% of the loan corporate portfolio .

Is it easy for an entrepreneur to obtain a laon today?

We have facilitated the decision-making procedure for SME lending, revised the requirements to the documents (we are now reviewing a minimum documents’ package). We have also offered a more loyal approach towards collateral for small companies (for enterprises with good financial  performance the correlation of collateral to the credit amount is 1:1, and we are ready to draw small credit amounts with no  collateral).

Which industries demand most credits and why?

Nearly 80% of all credits for small businesses fall within retail trade and service sector. Then follow companies and entrepreneursinvolved in the field of transportation services, construction and repairs.

Medium business is mainly retail and wholesale trade, and production.

What  is average loan amount and tenor?

Specialized programs for SME stipulate loans for up to three years (longer terms are also envisaged for mortgage programs) with loan amounts of up to UAH 1-1.5 million. The scale of amounts drawn to small business loans is somewhat different. And the average indicators are as follows: the tenor is a little more than 2 years, the amount is UAH530 thousand.
Do you envisage SME loans aiming at acquiring commercial immovable property, motor transport and equipment?
By all means, a set of standardized loan products, including those you have enumerated, is the basis for SME loans
If you need more details  as for lending and other services, rendered by OJSB Ukrgasbank (the NBU license 123 dated 19.11.2001), please contact the nearest bank office or call centre 8-800-309-00-00 (calls from fixed-line telephones in Ukraine are free of charge).
 

24.09.2006