October. Roundtable Access to Finance for Small and Medium Business (Kiev. Ukraine)
On 22 October, a roundtable "Access to Credit Capital and Finance for Business" for conducted in Kyiv, Ukraine. The joint ACCA-/ CPA-Australia / CGA-Canada recommendations for governments, banks, and businesses regarding access to finance to SME’s, based on the global survey by Economist Intelligence Unit were presented.
In those countries hit hardest by the economic downturn, banks have cut lending, and are facing criticism for not passing on interest rate cuts designed to help economies recover. Businesses experiencing depressed demand for their products or services are faced with tough decisions on investment and staffing levels and on the best structure to survive and compete in the future.
The accounting bodies have called for continued support for SMEs, noting that unless this sector has the confidence to resume hiring and investing, the global recovery could prove fragile. Early signs of improvement in the economy could be misleading and policymakers must remain on the alert until at least 2011, the three organizations have warned.
Participants of the roundtable included:
- Nataliya Vovchuk, Head of ACCA Ukraine, Baltic and Caucasus States
- Valeriy Lytvytsky, head of the group of advisors, National Bank of Ukraine
- Dmytro Miller, FCCA, CFO “Esta Holding”, System Capital Management Group
- Vitaliy Melnychuk, Vice President, Investment company KINTO
- Volodymyr Sobyschenko, Association of Ukrainian Banks
- Maksym Buryachok, ACCA, CEO, collecting company “Ukrborg”
- Tetyana Korotka, finance expert, International Center for Policy Studies
- Oksana Serdyuk, deputy director, Institute of financial policy
- Volodymyr Vysotsky, advisor of the USAID project “Access to Credit Initiative”
- Inna Chapko, senior expert of the Blue Ribbon Analytical and Advisory Center, UNDP.
- And others participants, ACCA members in Ukraine, media.
“Given this is the first recession for many SMEs, they may need to re-learn finance and reconsider how they do business. Many will need support from professional accountants who have a crucial role to play in helping them to get through these challenging times,” said Nataliya Vovchuk, Head of ACCA Ukraine, Baltic and Caucasus States.
One of the key factor affecting access to finance for SMEs in Ukraine, as discussed by participants, is lack of high quality, professional cadre who would be preparing sound reports for SMEs. Financial reports, which make the basis for investment decision, - they simply don’t exist, said Maksym Buryachok, ACCA. Reports, which are being submitted to authorities, do not reflect the real situation in the company. A special reporting has to be reconstructed, built from scratch, in order to understand, what is going on in the company. Qualified specialists, who can establish managerial accounting, budgeting, who possess international professional qualification, are very rare in Ukraine, and, unfortunately, very few SMEs can afford their services. This is very unfortunate, as small and medium business is the most flexible and innovative, and is the driving force of economic recovery. That is why development of professional financial cadre is so important for development of SME’s.