Coronavirus crisis: Over 10% of small and medium-sized enterprises in Ukraine on verge of bankruptcy

Source : 112 Ukraine

According to the representative of the UN Development Program in Ukraine, during a crisis there should be policy directions that promote growth and job creation.
16:31, 28 November 2020

Restaurant in Kyiv
Kyiv police

The Ukrainian government should continue to support small and medium-sized enterprises, as more than 10% of them are already on the verge of bankruptcy and will soon go out of business. Dafina Gercheva, Resident Representative of the United Nations Development Program (UNDP) in Ukraine, said this in an interview with Interfax-Ukraine.

“We need to continue to support small and medium-sized enterprises. If we look at the private sector, in particular small and medium-sized businesses, more than 10% of these enterprises are already on the verge of bankruptcy and will soon go out of business. They need financial incentives and other guarantees of support. so that they can continue to work," said Gercheva.

In times of crisis, like the current one, there should be policies that promote growth and job creation, she said.

Based on the UNDP assessment of the socio-economic impact of the Covid-19 coronavirus infection, more than 9 million people will be in financial distress by the end of this year.

"The unemployment rate is growing. Since May, more than 4 million people have been registered as unemployed. However, we believe that in fact this figure is higher, since the share of the shadow economy in Ukraine is large," Gercheva said.

Related: Covid-19 in Kyiv: 1,739 cases observed over 24hrs

She stated that there is a very thin line between adhering to the coronavirus response protocol, while ensuring the normal functioning of the economy.

"After all, a complete quarantine will harm the economy and the country as a whole more than protect the population. A balance must be found, and it must be based on a detailed analysis and assessment of the situation. I know that small and medium-sized entrepreneurs are very unhappy with the situation. But if we look at the epidemiological situation in the country and the rapid increase in the number of people with coronavirus disease, we need to be very careful in our actions," Gercheva explained.

She also stressed the need to take all measures to prevent the disease, including wearing masks, observing personal hygiene rules, maintaining social distance and other measures.

Earlier it was reported that President Zelensky registered bills in the Verkhovna Rada that should support business during the quarantine period.

Related: CovidUkraine: 16,294 new cases observed over last 24hrs

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