Agrarians in Ukraine will be able to take advantage of a new financing opportunity – to receive up to ₴30 million in loans with partial guarantees from the Agricultural Credit Guarantee Fund. As noted by Minister of Agrarian Policy Vitaliy Koval, the authorized capital of the Fund amounts to ₴812 million, which allows for guaranteeing loans totaling up to ₴3 billion. However, despite these opportunities, banks have issued only 24 loans totaling ₴39.7 million in the past few months.
This is reported by Finway
Need for Support in the Agricultural Sector
Koval emphasized that there is a significant need to strengthen support for areas such as horticulture, vegetable growing, seed production, as well as for the acquisition of new equipment. The Minister also highlighted the importance of involving not only banks but also credit unions in this collaboration.
Underfunding of the Agricultural Sector
The agricultural sector in Ukraine is currently suffering from substantial underfunding, estimated at more than ₴828 billion. Therefore, in the context of war, every available financing tool must be as effective as possible. The Credit Guarantee Fund can provide real support to small and medium-sized farmers with a land bank of up to 500 hectares, covering up to 50% of the loan amount with the possibility of:
- Obtaining an investment loan for up to 7 years;
- Loans for land purchase for up to 10 years;
- Financing of working capital for up to 3 years.