Given the prominent role of SMEs in economic development, state policy is needed to increase SMEs access to financing. In 2012 eight out of 27 regions did not provide any financial support. The largest amounts of financial support between UAH 1 mln and UAH 2 mln were granted in Kyiv, Odesa region, Lugansk region and Ivano-Frankivk region to only 10-13 small enterprises. The small number of supported enterprises along with small amount of support makeі this instrument negligible in raising SMEs access to financing. Under the current budget constrains the regional policy should primarily focus not on direct financial support, but, instead, on more efficient instruments, especially efficient business environment deregulation for local SMEs.

The financial crisis of 2008-2009 in Ukraine caused an abrupt fall in small and medium sized enterprises’ (SMEs) access to bank loans because of economic recession, financial difficulties for SMEs and accumulation of bad loans by banks. Now banks slowly increase SMEs financing, but credit conditions are much tighter. Banks increase their requirements towards SMEs financial statements and collateral, they more often refuse SMEs application for loans and investment loans to SMEs considerable declined. SME lending is a perspective business for banks, and they are ready to increase amount of loans to SMEs in 2013-2014 even under the current moderately pessimistic economic expectations. However, impediments to recovery of SMEs access to bank financing are serious: slow economic growth, still high amount of bad loans, slow progress in strengthening creditors’ rights, weak and non-transparent business of SMEs. SMEs name such impediments as high interest rates and collateral requirements. Given the prominent role of SMEs in economic development, state policy is needed to increase SMEs access to financing. However, direct state financing of SMEs are very small and is not able to affect SMEs access to financing. At the same time, state initiatives to strengthen legal and business environment to stimulate bank lending to SMEs have had little progress for the moment.

Already two years have passed since the day Viktor Yanukovich announced new reformation course and presented Economic reform program 2010-2014 «Prosperous society, competitive economy, effective state». The ambitious plan outlined considerable changes in economic system and even in case the plan was partially implemented, Ukraine could reach another level of development. A Coordinative Center for Economic Reforms had been created at the President Office and active work had started. However, after two years of active changes and contradictory results a question arose – what, out of all implemented measures, was indeed for good and deserves to be called «reforms».

Business environment is the backbone for prosperity of every society. People that are able to run and develop their own businesses is the very capital, the very ‘engine’ which allows for modern countries moving forward and competing on international markets. That is why fostering of “entrepreneurial capital” should be an axiom for a wise statesman. Unfortunately, in Ukraine the authorities treat entrepreneurs as ‘grabbers’ and ‘bloodsuckers’ and that is why it is so difficult to create favorable business-climate at the country.

A year and a half have already passed since the start of Viktor Yanukovich reform. The ambitious transformation plan has showed noticeable progress on many directions. However, so far none, including the authorities’ representatives, can call the reformation efforts successful. Properly outlined priorities and action plan stumbled on financial and political interests of various influential groups, what, naturally, stipulated for a large-scale ‘correction’ of the reform plan. Apparently every plan needs to be updated with time. However, comparative analysis of the new reform action plan showed that ‘reformators’ have already skipped many initially positive initiatives.

The study on portfolio flows to CIS is one of the integrative parts of the European Commission project on analysis of economic relationships between EU and its eastern neighbors – Eastern Neighborhood: Economic Potential and Future Development (ENEPO). The goal of the research was to identify the factors responsible for portfolio flows to CIS countries.

Presentation for round table “On Enterprise Development and investment climate in Ukraine” organized by OECD and EU/Tacis Program. Language: English

The paper analyzes shortcomings of the existing capital account regulations in Ukraine and international experience of capital account liberalization followed by recommendations for Ukraine. The paper was prepared within the Task Force on Economic Reform Strategy project, operating under the Blue Ribbon Commission Analytical and Advisory Center. Language: Russian

The paper contains analysis of the recent development of Ukrainian market of financial services, existing problems that impede its further development and possible ways of their resolving. Language: Ukrainian


This book contains a collection of articles produced by the team of Harvard/CASE Ukraine project in Ukraine. The focus of the book is on specific reform measures as well as interactions among these measures and their direct/indirect and short-term/long-term effects on the economy.

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