Good day! I am happy to help you understand this resolution.
1. **Essence of the Law:**
The resolution introduces changes to the procedure for providing financial state support to entrepreneurs, expanding support opportunities for those working in areas of high military risk. In particular, it allows for the refinancing of loans and extends loan terms for enterprises located in these areas, in order to support their activities in difficult conditions.
2. **Structure and Main Provisions:**
The resolution introduces changes to the Procedure for providing financial state support to business entities, approved by Resolution of the Cabinet of Ministers of Ukraine No. 28 dated January 24, 2020. The changes concern:
* Clarification of the definition of territories to which the support applies, including territories of active hostilities.
* Introduction of the concept of “refinancing” to enable repayment of existing loan debts.
* Addition to the list of purposes for which support can be directed, with refinancing for enterprises in the high military risk zone.
* Extension of the deadline for submitting loan applications until December 31, 2027, for enterprises in the high military risk zone.
* Clarification of the terms for amending loan agreements and refinancing for enterprises in the high military risk zone, including restrictions on annual income and dividend payments.
* Change in interest rates on loans for enterprises in the high military risk zone: reduction to 1% per annum for investment purposes and refinancing, and to 3% per annum for working capital financing and refinancing.
3. **Key Provisions for Use:**
* Enterprises operating in the high military risk zone are given the opportunity to refinance loans and obtain extensions of loan terms.
* It is important to pay attention to the restrictions on annual income and dividend payments when refinancing.
* Reduced interest rates (1% and 3% per annum) are significant support for enterprises in the high military risk zone.
* This resolution concerns changes to the current legislation of Ukraine.
