The Verkhovna Rada of Ukraine adopted draft law No. 11238 “On the National Development Institution” (NDI), which initiates a new stage in the system of financial support for small and medium-sized businesses (SMEs).
The document was developed with the participation of the Ministry of Finance of Ukraine, the Reform Project Office under the Ministry of Finance, the Entrepreneurship Development Fund (EDF), the German Development Bank KfW and consultants Deloitte, and was also agreed with the World Bank and the EU. 280 deputies voted for it.
“The Entrepreneurship Development Fund, which, in particular, implements the state program “Affordable Loans 5-7-9%”, which has demonstrated effectiveness in promoting economic stability and growth, became a platform for the launch of the National Development Agency and further integration of Ukraine into the European financial ecosystem. The Law adopted today by the Verkhovna Rada also paves the way for direct cooperation between the NUR and the EU, which will allow attracting funding from European programs for Ukrainian entrepreneurs, emphasized Yuriy Draganchuk, Deputy Minister of Finance of Ukraine for European Integration.
The NUR’s activity model is based on the practices of the German development bank KfW, combining the autonomy of the institution and partnership with the government.
The new institution will have the status of a special type of financial organization and will operate on the principle of a “second-tier institution”, without the goal of making a profit. The main function is to provide SMEs with access to preferential lending through partner banks. It will have autonomous management, adapted regulation by the NBU, and will be able to administer state programs to support entrepreneurship.
“The adoption of the law on the NUR is not just a reform on paper. Already today it has opened the way to attracting tens of millions of euros and dollars for Ukrainian entrepreneurs, said Andriy Gapon, Chairman of the Board of the Entrepreneurship Development Fund.
He emphasized that the creation of the NUD is a strategic step that combines the efforts of the government, parliament and international partners to form a modern system of financial support for entrepreneurship. The National Development Institution should become a key element of the financial infrastructure of recovery, combining state policy, international partnership and new opportunities for Ukrainian business.
