A pilot project aimed at supporting farmers with land banks of up to 500 hectares has been launched in Ukraine by engaging non-bank financial institutions. The goal of the initiative is to expand agricultural producers’ access to financing, especially for small and medium-sized farms.
This is reported by Finway
New Financing Opportunities for the Agricultural Sector
As part of the project, credit unions and financial companies will be selected that can provide farmers with loans partially covered by portfolio guarantees. These guarantees are provided by the Agricultural Credit Partial Guarantee Fund. This helps reduce risks for lenders and facilitates access for farmers to financial resources.
“The Fund will guarantee up to 50% of the debt on such a loan. The total limit for guarantees is 80 million UAH”
Conditions for Participation in the Selection
To participate in the selection of credit unions and financial companies, it is necessary to have a valid license for providing loans, as well as to submit a written application in any form along with a package of documents defined by the relevant regulatory provisions.
The acceptance of applications and selection of institutions will be conducted until the total limit of guarantees is fully utilized, but no later than January 30, 2026. The organizer of the pilot project is the Agricultural Credit Partial Guarantee Fund, established by the Cabinet of Ministers of Ukraine.