Extension of the “Affordable Loans 5–7–9%” Program to Frontline Territories

On 11 October 2025, Resolution of the Cabinet of Ministers of Ukraine No. 1294 dated 10 October 2025, came into force. The Resolution introduced amendments to the Procedure for Providing State Financial Support to Business Entities, approved by Cabinet of Ministers of Ukraine Resolution No. 28 dated 24 January 2020.

The amendments extend the “Affordable Loans 5–7–9%” program to areas of active hostilities where state electronic information resources operate and the end date of military operations has not been determined. Business entities operating in such areas are now entitled to receive state financial assistance.

A refinancing mechanism has been introduced, allowing authorized banks to provide loans for the repayment of existing debts of entrepreneurs under loans covered by the state interest rate compensation program

The mechanism also allows modification of the terms of existing loan agreements to provide additional support, including extension of the loan term, adjustment of the repayment schedule, or modification of the interest rate.

Businesses operating in zones of high military risk are granted the right to refinance debts on loans with interest compensation. They may also apply for an extension of the term of loan agreements concluded in 2022–2024 until 31 December 2027.

If the territory in which a business operates is classified as a high-risk military zone after the loan agreement was concluded, the authorized bank may modify the loan conditions to apply the preferential interest rate compensation.

Preferential interest rates under the program for areas of high military risk are set at:

  • 1% per annum for the first five years for investment loans and their refinancing (thereafter — 5%);
  • and 3% per annum for working capital financing and the respective refinancing.

These amendments aim to support enterprises that continue operations in frontline and high-risk areas, ensure financial stability, and promote economic development under challenging conditions.

We will closely monitor further developments in this area and will report on them in future Legal News.