The Minister of Agrarian Policy, Vitaliy Koval, announced the launch of a new financing program for agrarians, which will allow them to obtain loans of up to 30 million hryvnias with partial guarantees from the Agricultural Credit Guarantee Fund. According to him, the authorized capital of this Fund is 812 million hryvnias, enabling the guarantee of loans totaling up to 3 billion hryvnias. However, in just a few months, banks have issued only 24 loans amounting to approximately 39.7 million hryvnias.
This is reported by Business • Media
During his speech, the minister emphasized the need to strengthen support for the horticulture, vegetable growing, seed production, and equipment acquisition sectors. He also noted that it is necessary to involve credit unions in collaboration, not just banks, to expand access to financing.
Underfunding of the Agricultural Sector and Opportunities for New Loan Programs
Currently, according to the minister, the agricultural sector is underfunded by more than 828 billion hryvnias. In such conditions, every financing tool must operate as effectively as possible, especially in wartime. The Credit Guarantee Fund can provide real support to small and medium-sized farmers who have a land bank of up to 500 hectares, covering up to 50% of the loan amount.
Financing can be provided in the form of:
- investment loans for up to 7 years;
- loans for land purchase — up to 10 years;
- working capital financing — up to 3 years.
These measures are aimed at supporting the development of the agricultural sector and enhancing its financial stability in the face of modern challenges.