The Ukrainian Banks Association (UBA), together with the Ukrainian Veterans Entrepreneurs Association (UVEA), is preparing an appeal to participants in the financial services market, urging them to more actively support the financing of veteran businesses. The joint letter details the advantages of attracting funds for veteran companies through investments in private veteran bonds and shares.
This is reported by Finway
Advantages of Investing in Veteran Business
According to the head of the UBA, the instrument of private veteran bonds (PVB), as well as a new financial instrument – the purchase of shares – have already demonstrated their effectiveness. He emphasized that these mechanisms allow for the effective placement of free liquidity into income-generating instruments and the utilization of veteran financial service expertise without the need to create a separate specialized infrastructure within banks.
“The instrument of private veteran bonds (a telling and symbolic abbreviation – PVB), as well as another recently introduced instrument – the purchase of shares, which is even more profitable for financial institutions, have already proven themselves well. Our joint appeal to bank and financial company leaders addresses an important social idea, highlighting the benefits that will allow for the placement of free liquidity into income-generating instruments, and the opportunities to utilize the specialized expertise of veteran financial services without the need to build a dedicated infrastructure from scratch within banks,” explained the head of the UBA.
Reputational Benefits and Market Prospects
Among the additional advantages of such support is the reputational effect for banks and financial companies. Investments in veteran businesses will contribute to strengthening the institutional and societal leadership of market participants. There are already banks and financial companies that actively invest in veteran services, setting an example for others.
The UBA emphasizes the need for a comprehensive solution to the legislative regulation of support for veteran entrepreneurship, as well as the establishment of a special institution for systematic assistance to veterans in business.
According to experts, the annual financial resource needs of veteran businesses – including own, grant, and borrowed funds – may reach 2 trillion UAH. One of the sources for attracting additional funds is the sale of special securities by FinStream called “Private Veteran Bonds” (PVB). The funds raised are directed to support veteran companies through preferential loan programs, enabling veterans to obtain cheaper loans even if they do not meet standard banking requirements.
