# 39 225-230 View full article

УДК 336

DOI: https://doi.org/10.36887/2415-8453-2024-3-39

Zhezherun Yuliia,
PhD in Economics, Associate Professor, Researcher of Scientific Research Institute of Armament and Military Equipment Testing and Certification,
https://orcid.org/0000-0001-8200-730X
Mistsenko Roman,
Senior Researcher – Senior Test Engineer of Scientific Research Institute of Armament
and Military Equipment Testing and Certification, lieutenant colonel,
https://orcid.org/0000-0003-4015-5616
Kolesnyk Vitalii,
Researcher – Test Engineer of Scientific Research Institute of Armament and Military
Equipment Testing and Certification, major,
https://orcid.org/0000-0001-7919-4255

JEL classification: G21; E58

The article examines the current state of bank lending to small businesses in the defense sector in Ukraine. An analysis of the component expenditures of the state budget in 2021–2024 has been carried out; in particular, the share of defense expenditures has been determined. It has been found that defense production requires working capital for the purchase of components, covering the gap between the advance and the need for funds, relocation of enterprises, and provision of uninterrupted/alternative power sources. An analysis of current lending programs for small and medium-sized enterprises managed by Ukrainian banks in 2023 (JSC CB “PrivatBank”, JSC “Oschadbank”, JSC “Sense Bank”, JSC “Ukrgasbank”, JSC OTP BANK, JSC “Taskombank”, JSC “KredoBank”) has been carried out. The structure and volumes of loans issued to entrepreneurs within the framework of the Affordable Loans at 5-7-9% state program during the period of martial law have been studied, and their sectoral structure indicates that the funds have been being directed chiefly to agriculture – 52%, wholesale trade – 17% and food industry – 8%. A range of problems faced by small businesses in the defense sector in the process of bank lending has been outlined, in particular: lack of contracts with the Ministry of Defense of Ukraine, the need for weapon use approval, short-term nature, obtaining permission to export weapons, high interest rates, military risks, lack of collateral property, etc. The priority measures for expanding lending to the defense sector in Ukraine by the National Bank of Ukraine, the Ministry of Strategic Industries of Ukraine, and the Ministry of Finance of Ukraine have been systematized. It has been proposed that preferential state programs for bank lending be introduced to small businesses in the defense sector.

Keywords: bank lending, small business, defense sector, support program, state program.

Rеferences

  1. Zvit pro finansovu stabil’nist’. (2024). [Report on financial stability]. Natsional’nyj bank Ukrainy. Available at: https://bank.gov.ua/admin_uploads/article/FSR_2024-H1.pdf?v=7.
  2. Kornyliuk, A., Kornyliuk, R. (2024). Derzhavna prohrama pidtrymky biznesu «Dostupni kredyty 5-7-9%»: u poshukakh optymal’noho dyzajnu. [State business support program “Affordable loans 5-7-9%”: in search of optimal design]. Voks Ukraina. Available at: https://voxukraine.org/derzhavna-programa-pidtrymky-biznesu-dostupni-kredyty-5-7-9-u-poshukah-optymalnogo-dyzajnu.
  3. Kredyty dlia maloho biznesu v Ukraini: de vziaty ta iak otrymaty biznes kredyt u banku? (2023). [Small business loans in Ukraine: where to get and how to get a business loan from a bank?]. Available at: https://inventure.com.ua/uk/analytics/articles/krediti-dlyamalogo-biznesu-v-ukrayini:-de-vzyati-ta-yak-otrimati-biznes-kredit-u-banku.
  4. Fond rozvytku pidpryiemnytstva. [Entrepreneurship Development Fund]. Available at: https://bdf.gov.ua/programs.
  5. Pro vnesennia zmin do deiakykh postanov Kabinetu Ministriv Ukrainy schodo nadannia finansovoi derzhavnoi pidtrymky sub’iektam pidpryiemnytstva: Postanova NBU. (2023). [On making changes to some resolutions of the Cabinet of Ministers of Ukraine regarding the provision of financial state support to business entities: NBU Resolution]. №229 dated March 14, 2023. Available at: https://zakon.rada.gov.ua/laws/show/229-2023-%D0%BF#Text.
  6. Prohrama «Dostupni kredyty 5-7-9%» (nova redaktsiia). [Program “Affordable loans 5-7-9%” (new edition)]. Available at: https://bdf.gov.ua/wp-content/uploads/2021/03/Prohrama-Dostupni-kredyty-5-7-9.pdf.
  7. Stratehiia z rozvytku kredytuvannia, skhvalena Radoiu z finansovoi stabil’nosti. (2024). [Strategy for the development of lending, approved by the Council for Financial Stability]. dated June 6, 2024. Available at: https://bank.gov.ua/admin_uploads/ article/Lending_development_strategy_2024.pdf?v=7.
  8. Tomchuk, O., Trehubov, O., Andronik, O. (2023). «Financial aspects of managing the solvency of small and medium-sized businesses in war conditions». Ekonomika ta suspil’stvo. № 50. Available at: https://www.economyandsociety.in.ua/index.php/ journal/article/view/23955.
  9. Fol’tovych, D., Blaschuk-Dev’iatkina, N. (2024). «Peculiarities of lending to small and medium-sized businesses in wartime conditions». Innovation and Sustainability. № 2. рр. 82-91. Available at: https://ins.vntu.edu.ua/index.php/ins/article/view/256.

The article was received 09.08.2024

Quote article, APA style

Zhezherun Yuliia, Mistsenko Roman, Kolesnyk Vitalii. 09.08.2024. Status of bank crediting to small businesses in the defense sector in ukraine. The journal "Ukrainian Journal of Applied Economics and Technology". 2024 / #3. 225-230pp. https://doi.org/10.36887/2415-8453-2024-3-39

Quote article, MLA style

Zhezherun Yuliia, Mistsenko Roman, Kolesnyk Vitalii. "Status of bank crediting to small businesses in the defense sector in ukraine". The journal "Ukrainian Journal of Applied Economics and Technology". 09.08.2024. https://doi.org/10.36887/2415-8453-2024-3-39

Quote article, translit