OTP BANK offers business loans with cashback option of up to 15%

JSC OTP BANK, within the framework of a joint program with the European Bank for Reconstruction and Development (EBRD), offers small and medium-sized enterprises (SMEs) investment loans to support their business in times of war with the possibility of compensation for part of the costs financed by the Bank's credit funds. The parties recently signed a new cooperation agreement that will allow OTP Bank to provide EUR 120 million of new financing to the Ukrainian private sector with the participation of the EBRD through a 50% credit risk coverage instrument on a portfolio basis.

“This program is, in fact, a successful expansion of our previous cooperation with the EBRD, which was in great demand among our clients, and is aimed at supporting such critical sectors as agriculture, production and trade of essential goods, logistics services and others. Thanks to this lending instrument, companies are able to continue their activities, develop and ensure the availability of goods and services to the population,” said Natalia Kondratchuk, Head of Corporate Finance Department of OTP Bank.

“Such loans under portfolio guarantees can be used to support long-term investments of SMEs in green technologies that meet the standards of the European Union and will help increase the competitiveness of enterprises in domestic and foreign markets. After the investment project financing is implemented, SME borrowers will be able to apply for investment incentives (cash compensation, cashback) provided by the EU under the EU4Business initiative.

The amount of compensation depends on the type of assets acquired and the complexity of the project and can be up to 15% of the amount of loan funds received. Reimbursement is made in