Ukraine has launched the Fund for Partial Guarantee of Loans in Agriculture, which will provide guarantees for loans to small farmers who cultivate up to 500 hectares of land. This was reported by the Ministry of Agrarian Policy and Food of Ukraine, UNN reports.
Details
Ukraine has launched the Fund for Partial Guarantee of Loans in Agriculture. According to Mykola Solsky, Minister of Agrarian Policy and Food of Ukraine, the Fund's activities are aimed at supporting small, small and medium-sized farmers who cultivate land of up to 500 hectares
It is noted that borrowers will be able to receive investment loans for up to 7 years, loans for the purchase of land for up to 10 years, and working capital for up to 3 years, with a maximum loan amount per borrower of UAH 30 million.
To get access to the Fund's guarantees, a farmer needs to register with the State Agrarian Register.
As the Minister emphasized, the Fund will guarantee to Ukrainian banks to cover up to 50% of their loan obligations.
A few years ago, we started looking for an additional tool to make banks interested in lending to such clients. Sometimes they don't even have enough collateral to get a loan. The Fund will guarantee to Ukrainian banks to cover up to 50% of loan obligations. This is a good tool for small farmers to be able to get loans
He also noted that there are enough funds for the fund to operate efficiently and urged banks to invest in the development of farms.
The Fund is sufficiently capitalized to start operations thanks to a €10 million grant provided by the European Union for the World Bank's Strengthening the Partial Credit Guarantee Fund for Agriculture Project.
Recall
In 2021, the Verkhovna Rada supported the creation of the Agricultural Credit Guarantee Fund.