Ukrainian entrepreneurs secured 567 loans worth around 2.2bn hryvnias ($54mn) under the state portfolio guarantees programme in July, down sharply from June, reported Interfax-Ukraine.

The total volume was 38.9% lower than the previous month, while the number of loans fell by more than a fifth, ministry data showed. The share of principal debt obligations guaranteed by the state in July amounted to 1.2bn hryvnias.

As of Aug. 1, 28 creditor banks were servicing 23,318 loans worth 80.5bn hryvnias, of which 36.6bn hryvnias were covered by state guarantees. That figure represents 71% of the overall guarantee limit of 51.7bn hryvnias.

PrivatBank continued to dominate the programme, servicing nearly 15,480 loans worth 23.6bn hryvnias – about 65% of its guarantee limit. Oschadbank ranked second with 3,380 loans worth 12.1bn hryvnias, followed by Ukrgasbank with 1,014 loans totalling 10.5bn hryvnias.

Other major lenders included FUIB and Ukreximbank, each having used 85% of their limits. In contrast, smaller banks such as Cominbank, Ukrainian Capital Bank and Investment and Savings Bank utilised less than half of their allocated guarantees.

A-Bank and Pravex Bank stood out by fully exhausting their available limits, servicing loans worth 64mn and 2mn hryvnias respectively.

The portfolio guarantee scheme, introduced to support business lending during wartime, is seen as a key instrument for maintaining credit flows to small and medium-sized enterprises.