State credit

State credit - is the economic relations which arise between the company and the state as a result of the purchase of government securities first (company becomes a creditor of the state), and by the receipt of budgetary and extra credit (the company is the borrower).State budget provision of credit shall be given loans directly to ministries, departments and other central bodies of executive power to finance through financial institutions:launch facilities;started before new buildings for production purposes;modernization and reconstruction of existing enterprises, regardless of ownership.Financing the investment needs of enterprises is targeted, direct, rotary, fixed-term, collateralized or warranty (guarantee).Low cost loans are made to the following conditions:volumes of low cost loans for the year accounted for ministries, departments and other central government bodies, which are funded by the Ministry of Economy, upon approval of the State program of economic and social development of Ukraine;list of buildings and production facilities that are financed from the state budget, defines the Ministry of Economy in consultation with the Ministry of Finance and the approval of the Cabinet of Ministers of Ukraine in the State program of economic and social development of Ukraine for the year that plan;maturities of budget credits shall not exceed three years, and in some cases - five years;repayment of budget credits begins one year after the expiration of the construction, reconstruction or modernization of an object credit (some of its queue, start-up complex) and is provided on a quarterly basis;repayment of budget credits used to purchase equipment that is not part of the building, starting next year for a planned and carried out on a quarterly basis for no more than two years;for the use of budgetary loans set an interest rate that is determined by the Ministry of Finance of Ukraine annually during the formation of the state budget, the Ministry of Finance of Ukraine is determined annually during the formation of the state budget.