Farmers will be able to get a soft loan from the European Investment Bank.
Legislative Act number 1530-VIII «On Ratification of the Financial Agreement between Ukraine and the European Investment Bank” as part of the main credit for the Ukrainian agricultural sector, came into force on 24 October 2016.
The government reported that earlier spelled Financial Assistance Agreement agrarian sector of Ukraine from the European Investment Bank, entered into a force. In order to develop the agricultural sector and farmers motivation (particularly SMEs), the specific needs, procurement of raw materials and fertilizers, as well as encourage the necessary technology by offering preferential loans. As part of this program has been allocated a total of 400 million euros. Domestic farmers can get credit for 12 years, four of which will be available at special concessional terms. Thus, interest payments on debt service will be much less.
It is noted that the borrower will act as resource person in Ukraine Ministry of Finance, Ministry of Agriculture, with the participation and cooperation with JSC “Ukreximbank” will be provided with financial resources to commercial banks. Selected banks, in turn, will carry out project selection, funding and monitoring of the practical implementation of these projects. The ministry stressed that more than 50% of all announced projects will be covered by credit from the European partner. The rest will be covered by the own funds of banks. Thus, the preferred hand over their projects in fisheries, aquaculture, growing grains and oilseeds.
