Financial Leasing 5-7-9%

"Affordable Financial Leasing 5-7-9%" is a government program aimed at facilitating access to bank financing for small and medium-sized businesses, namely, obtaining financing under the financial leasing product at a reduced interest rate.

PROGRAM AREAS

• The priority areas of the Program, , introduced to support important areas of business activity for the Ukrainian economy, are as follows:

"Financing of agricultural producers". Financing of agricultural producers for agricultural activities. There are no restrictions on the residency of participants (founders) and/or ultimate beneficial owners (UBOs);
"Processing industry". Financing of business entities operating in the processing industry, i.e., having a KVED of the main activity provided for in section C of the National Classifier of Ukraine, and in the field of animal husbandry, i.e., having a KVED of the main activity for all classes of group 01.4 of the KVED of section A of the National Classifier of Ukraine;
"Restoration of destroyed fixed assets as a result of military aggression". Financing the restoration of the Borrower's fixed assets destroyed as a result of military aggression, which is confirmed by relevant documents (acts of destruction and damage indicating their cause, acts of damage (destruction) of movable property, an extract from the Unified Register of Pre-trial Investigations on the opening of criminal proceedings, registration data of the State Register of Property Damaged and Destroyed as a Result of Hostilities, Terrorist Acts, Sabotage Caused by Military Aggression).

Program terms and conditions

Priority area	Amount of funding¹	Base fee	Fee paid by the customer		Commission fee
			Compensation remuneration	Additional part of the remuneration	For leasing services	Additional fees
"Agricultural producers"	up to UAH 90 million	changeable with quarterly revision UIRD3m + margin, Min % fee: no more than 25% Max % remuneration: 28% The margin is set depending on the Customer’s annual revenue² for the reporting period (calendar year): 8% - if up to 2 million euros 6% - if 2-10 million euros 4% - if 10-50 million euros Min % fee applies during the period of martial law and 90 days after its lifting	5% per annum - if the Customer’s revenue² is up to EUR 10 million 7% per annum - if the Customer’s revenue² is EUR 10 million to EUR 50 million	difference between Min % remuneration and UIRD3m + margin	no more than 1,5% of the financing amount (one-time fee)	Maximum amounts of fees for additional services % of the cost of the leased asset per year: 4% - for agricultural machinery, trucks, buses, special purpose vehicles 8% - for passenger vehicles (commercial/ production purposes) 2% - for industrial equipment, road construction equipment, power supply devices (generator sets) and other items
"Processing industry" for all KVED classes of Section C and "Livestock" (main KVED) for all classes of group 01.4 of KVED of Section A	up to UAH 150 million
"Reconstruction of destroyed fixed assets as a result of military aggression"	up to UAH 60 million
Term: up to 5 years
Compensation from the fund: the difference between UIRD3m + margin and Compensation remuneration

¹The maximum amount of financing provided by all banks and lessors to the Customer and all members of its GRC under the Program "Affordable Loans 5-7-9%" and the Program "Affordable Financial Leasing 5-7-9%"

²Including members of the GRC (group of related customers)

WHO CAN GET FINANCING?

GENERAL REQUIREMENTS

The Lessee can be a business entity - a resident of Ukraine, which is:
- a legal entity whose ultimate beneficial owners (controllers) are individuals residents of Ukraine, or:
- a producer of agricultural products (as defined in the Law of Ukraine "On State Support of Agriculture of Ukraine"), which must be registered in the State Agrarian Register. Both residents and non-residents may be participants (founders) and/or ultimate beneficial owners of the priority area.
- The Lessee may not be an entity whose participant (shareholder, member) or UBO is a citizen of a state recognized by Ukraine as an aggressor state or an occupying state and/or an entity that belongs or has belonged to a terrorist organization, a legal entity in which the entity that belongs or has belonged to a terrorist organization is a participant (shareholder, member) or UBO.
The Lessee is registered on the territory of Ukraine (except for the territories temporarily occupied by the russian federation, included in the list of territories where hostilities are (were) conducted or temporarily occupied by the russian federation, approved by the Ministry for Development of Communities and Territories of Ukraine (No. 376 of 28.02.2025), for which the date of termination of the temporary occupation is not determined).
The Lessee must not belong to the business entities defined in Article 13 of the Law of Ukraine "On the Development and State Support of Small and Medium-Sized Enterprises in Ukraine".
The term of business activity is not less than 12 months.
The Lessee, together with the GRC, has not received state aid in the last three calendar years in excess of the equivalent of EUR 200 thousand at the NBU exchange rate effective on the last day of the financial year*.

* Note: The requirement does not apply to the Borrower engaged in agricultural production and fishing.

INTEREST COMPENSATION IS SUSPENDED IN CASE OF

occurrence of overdue debt under the agreement payable by the Lessee for a period of more than 15 days (compensation resumes the following calendar month after the violation is resolved).
Attention! During martial law, overdue debt for more than 15 days suspends the compensation, but the Lessee does not lose the right to receive it after repaying the overdue debt.
discovery that the Lessee belongs to the entities defined in clause 8) of Article 13 of the Law of Ukraine "On the Development and State Support of Small and Medium-Sized Enterprises in Ukraine", meaning the Lessee has debts to the budget, the Pension Fund of Ukraine, and compulsory state social insurance funds.
in the absence of funds from the Entrepreneurship Development Fund to compensate for interest. The Lessee must independently repay the accrued interest at the Base Rate (including for the period of lack of funds).
the business entity is registered in the territories temporarily occupied by the russian federation, included in the list of territories where hostilities are (were) conducted or temporarily occupied by the russian federation, approved by the Ministry for Development of Communities and Territories of Ukraine (No. 376 of 28.02.2025), for which the date of termination of the temporary occupation is not determined.
Please note: Interest compensation resumes once the reasons for the customer’s noncompliance with the above conditions are eliminated.

PARTICIPATION IN THE PROGRAM IS TERMINATED IN CASE OF

Exceeding the limit of state aid received by the Lessee and the GRC, namely:
- minor state aid received over the last 3-year period, which in total may not exceed the equivalent of EUR 200 thousand, determined at the official exchange rate set by the National Bank of Ukraine as of the last day of the financial year;
Attention! This requirement does not apply to borrowers in the agricultural production and fishing fields.
The Lessee provided false or invalid information that resulted in the payment of state support funds to the Lessee;
the Lessee belongs to the entities defined in Article 13 of the Law of Ukraine "On the Development and State Support of Small and Medium-Sized Enterprises in Ukraine" (except for the case where the Lessee is found to be in non-compliance with clause 8 of Article 13 of the said Law of Ukraine regarding debts to the budget, the Pension Fund of Ukraine, or the funds of compulsory state social insurance, the violation of which is only grounds for suspension of compensation);
absence of circumstances in which the authorized body for state aid recognizes the state support provided by the Entrepreneurship Development Fund to the Borrower as inadmissible state aid for competition purposes.