Over 4 years, the Polyanska AH in the Zakarpattia Oblast has allocated UAH 1.6 million at 3% per annum under the “Own Home” programme

 

By Dmytro Synyak                    

Hromada head usually issues something to someone, repairs, purchases... and in one way or another – spends money. Instead, the new amalgamated hromada is not a tool for spending funds and means to renovate and build something new. AH must earn for its welfare. How can it do it? The easiest way is to increase the number of jobs, which subsequently bring 60% of the personal income tax to the hromada budget. But here the complications start.

Petro Kyiashko, head of the Veselivska AH of the Zaporizhzhia Oblast, made one of the small, but quite real steps in this direction. Last year, he convicted local deputies of the need to allocate UAH 70 thousand to one of the entrepreneurs – for the construction of a new bus station.

“In order for the entrepreneur to pay taxes, he himself has to earn,” explains Petro Kyiashko. “If he earns more – he will pay more. How to make him earn more? Only by engaging him to various projects, necessary for the settlement. In this case, for UAH 70 thousand Vesele received a new large bus station in the centre – a kind of architectural business card. It is difficult for a person to start, and this requires small financial injections from the authorities. A push is needed...”

Petro Kyiashko also planned to allocate UAH 500 thousand to entrepreneurs in 2019. However, unexpected expenses forced him to abandon this expense line. But the Polyanska AH of the Zakarpattia Oblast has been providing loans to the local population for already four years in a row, and they have a complete history of success.

The “Own Home” programme of support to individual housing construction in villages was introduced in 1997.

The Polyanska AH found the necessary funds, but an agreement had to be signed with the Zakarpattia Oblast Investment Fund, since it has no direct right to grant loans. The fund acted as a co-financier of the hromada, providing part of the funds and obtaining for it 3% of the loan amount.

“From 2015 to 2018 the Polyana village council allocated UAH 747 thousand for “Own House” programme,” says Ivan Drohobetskyi, head of the Polyanska AH.

 

After amalgamation, the volume of the loan programme is constantly increasing.

I must say that direction of fund's activities is not purely business, but also social. At least, formal registration and payment of taxes are not required from peasants, who use the money.

Usually the village council gives up to UAH 50 thousand per person. However, it can pay more.

 

 

Before supporting the application, a special commision of the village council carefully scrutinises the information provided by the applicants.

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