By KYIV. Oct 24 (Interfax-Ukraine) – If the Partial Loan Guarantee Fund supports the state program 5-7-9, some 6,500-11,100 small farmers will be able to take advantage of its guarantees, according to a study conducted by the Kyiv School of Economics (KSE Agrocenter) with the support of the USAID AGRO program.
“One of the tools for expanding farmers’ access to financing is the Partial Loan Guarantee Fund for Agriculture, which will soon begin to provide partial guarantees for attracted credit resources to agricultural producers with up to 500 hectares of land bank,” USAID AGRO recalled on Telegram.
KSE Agrocenter cited as an example the results of a survey conducted by the World Bank and the Ministry of Agricultural Policy and Food of Ukraine, according to which about 63% of small agricultural producers interested in loans are willing to pay at least 5% per annum, and 37% – at least 7% per annum for using a loan under the state program 5-7-9.
At the same time, 37.2% of potential recipients of such financing are not willing to pay even 5% for the use of loans, and accordingly are unlikely to become clients of the Partial Loan Guarantee Fund for Agriculture.
According to KSE Agrocenter estimates, if the Fund cooperates with the state program 5-7-9, potentially 6,500-11,100 small agricultural producers will be able to take advantage of its guarantees.
“The potential volume of loans issued to small farmers under the guarantees of the Fund could reach UAH 25.4-43.3 billion. However, this result is only possible if government guarantees are combined with the program of affordable loans,” KSE Agrocenter is confident.
The study on the role of the Partial Loan Guarantee Fund for Agriculture was conducted by KSE Agricultural Center with the support of the USAID AGRO program within the Invincible Land project.
