By KYIV. May 12 (Interfax-Ukraine) – For the period from mid-March to May 11, Ukrainian banking institutions provided loans to farmers under the state program to support the sowing campaign in 2022 for a total of UAH 24.18 billion, including loans and portfolio guarantees worth UAH 4.36 billion in the period of May 5-11.
The relevant data on financing the sowing campaign in the conditions of the Russian military invasion of Ukraine were published on the website of the Ministry of Agrarian Policy and Food of Ukraine on Thursday.
"Everything has been done to ensure that agricultural enterprises have simplified access to credit. Today, they only need 20% of the collateral of the loan amount they take. The rest is covered by the state guarantee. It is important that grain has also been added to the collateral options as the main collateral. This is an important change to the standard approaches to lending that were in previous years," minister Mykola Solsky said.
It is specified that 80% (UAH 16.46 billion) of loans provided were portfolio guarantees, while a total of 9,270 agricultural producers received access to financing (2,070 in the last week).
Most of the loans for the sowing campaign were attracted by agrarians in Kirovohrad region – UAH 3.38 billion, Vinnytsia region – UAH 2.48 billion, Kyiv region – UAH 2.32 billion, Odesa region – UAH 1.94 billion, Dnipropetrovsk region – UAH 1.94 billion, Poltava region – UAH 1.62 billion.
According to the Ministry of Agrarian Policy, loans up to UAH 60 million under this program are issued at 0% per annum (under the Affordable Loans 5-7-9% state financial support program). The term of such lending is up to six months, and after its completion, the interest rate for borrowers will be 5% per annum. Agrarians falling under the definition of an agricultural producer can use the loan.
The agency recalled that the government program to support the sowing campaign is being implemented by the Cabinet of Ministers, the Ministry of Agrarian Policy, the Ministry of Finance, the Ministry of Economy, the National Bank and the banking sector.
