Ukraine’s parliament established the Agricultural Loan Guarantee Fund

Verkhovna Rada of Ukraine has supported the draft law 3205-2 on partial credit guarantee fund in the agricultural sector with an independent corporate management structure in the second reading and in general.

This is reported by ProAgroGroup with reference to Aspekty.net.

To avoid the possible misuse of funds and / or abuse in determining the direction of their use, the bill introduced such criteria:

• the fund provides guarantees of up to 50% of the outstanding principal amount;
• the fund provides guarantees for the duration of the loan agreement, but not more than 10 years;
• the amount of uncovered guarantees provided cannot exceed four times the size of the regulatory capital of the fund, the procedure for determining which shall be set by the body in charge of the state regulation of the financial services markets.

Earlier, Verkhovna Rada passed the draft law № 4046 on state aid for young farmers on second reading and in general.