Principles of operation

Our mission

The main goal of the Business  Development Fund (hereinafter referred to as the BDF) is to provide financial and other accompanying support to private entities of micro, small and medium enterprises (hereinafter referred to as MSMEs) in Ukraine. The BDF achieves its main goal mainly through operations with Ukrainian banks, non-bank financial institutions and other providers of financial services or similar institutions.

Since this goal can be achieved only under the condition of a stable working and developed banking system, an important task of the BDF is as well to support the development of the banking sector capable of providing sustainable long-term financing of MSMEs at an acceptable price.

General principles

The Fund was created under the name “German-Ukrainian Fund” on the basis of the Decree of the President of Ukraine dated June 1, 1998 No. 574/98 “On the German-Ukrainian Fund” and the resolution of the Cabinet of Ministers of Ukraine dated April 19, 1999 No. 628 “On the German-Ukrainian Fund” and operates in accordance with the legislation of Ukraine and this Statute.

According to the order of the Ministry of Finance of Ukraine dated January 11, 2020 No. 5, the name of the Fund was changed to the name “Business Development Fund”. The Fund is the legal successor of all rights and obligations of the German-Ukrainian Foundation.

The statutory capital of the BDF is 542 911 340 UAH.

The BDF is a non-profit institution, therefore, any possible profit is not distributed in favor of the BDF member, but is directed to further lending to MSMEs. This status of the BDF is determined by the intention to ensure the recovery of the funds of the BDF.

Management

The Fund’s management bodies are: 1) General Assembly – the highest management body of the BDF, 2) Supervisory Board – a collegial management body consisting of 5 (five) persons, of which 3 (three) members are independent, and 2 (two) – are representatives of the member (state represented by the Ministry of Finance). 3) The Board is the executive body of the Fund, which manages the current activities of the BDF.

List of financial services

The BDF provides financial loans at the expense of its own funds to eligible partner banks for further lending to MSMEs.

Programs

Credit programs are the main tool of BDF activity. BDF implements its programs according to the principle of a “second-tier” financial institution, providing financial resources to MSMEs through selected partner banks. Partner banks provide loans to target groups of MSMEs, which are described in the BDF programs.

This principle makes it possible to distribute credit risks between partner banks and BDF and to cover all regions of the country with BDF Programs due to the developed branch network of BDF partner banks.

Licenses and permits

A license to carry out economic activities for the provision of financial services (except for professional activities on the stock market), namely for the provision of funds on loan, including on the terms of a financial credit, granted by order of the National Commission that carries out state regulation in the field of financial services markets dated July 27, 2017 No. 3305.

General license for currency operations No. 2 dated 07.05.2006, issued by the National Bank of Ukraine.