The Cabinet of Ministers of Ukraine has decreed to establish a partial loan guarantee fund in the agriculture, approved its statute and provided the formation of the authorized capital. This was announced by the Minister of Agricultural Policy and Food Roman Leshchenko, as “ProAgro Group” reports with reference to the Ministry.
The official said that the Fund is intended to fundamentally change the rules of the game in the financial sector in favor of small agricultural producers.
The Fund will provide credit guarantees to primary agricultural producers who cultivate no more than 500 hectares of land. The Fund’s guarantees will be provided for up to 10 years and cover up to 50% of the outstanding principal.
This will significantly reduce banks’ risks of lending to small agrarians. Consequently, interest rates should become more affordable and credit terms should become longer.
“We want agrarians to stay on their land and to have all conditions and opportunities for development. This is how the main mission of land reform is embodied” – summed up Roman Leshchenko.
