Ministry of Finance has raised the first tranche of a joint project with the European Investment Bank to support agricultural enterprises
The Ministry of Finance has launched the implementation of a loan program for small and medium-sized enterprises in the agricultural sector under the joint project with the European Investment Bank (EIB) "Basic loan for the agricultural sector - Ukraine".
The project aims to expand the access of agricultural enterprises to affordable financing through bank lending, in particular, to comprehensively support value-added chains in the agricultural sector, namely the processing of grain and oilseeds, as well as fisheries and aquaculture.
The project is implemented through a number of commercial banks, selected and agreed with the EIB, which makes it possible to direct loans on attractive terms for farmers. Currently, the implementation of the Project sees the active phase and the first loan agreements of the participating banks have been agreed.
"The development of small and medium-sized businesses in the agricultural sector is important to increase the competitiveness of Ukraine's economy and its sustainable growth, as well as to boost exports of agricultural products of Ukrainian producers, to introduce the best available European technologies and management methods. The Ministry of Finance of Ukraine is actively working to improve the efficiency of state support for farmers and the funds of the European Investment Bank will help create the necessary source of their sustainable support through bank lending," said Deputy Finance Minister Oleksandr Kava.
Background
From September 2019, the selection of banks for participation in the joint project of Ukraine and the European Investment Bank "Basic loan for the agricultural sector - Ukraine" continues.
To participate in the Project, the applicant bank must meet the requirements approved by the Government Resolution of 10.07.2019 №606 "Issues of joint implementation with the European Investment Bank Project" Basic loan for the agricultural sector - Ukraine ", and submit an official letter signed by an authorized person indicating the expected amount of funding under the Project together with the documents, the list of which was approved by the above-mentioned Government Resolution.