The Agricultural Loan Guarantee Fund has already issued guarantees to banks for loans to farmers worth UAH 2.6 million. The total amount of loans received by farmers was over UAH 5 million.

This was discussed during a meeting between Taras Vysotskyi, Acting Minister of Agrarian Policy and Food of Ukraine, and the Fund's management.

The average loan size for farmers under the Fund's guarantees currently ranges from UAH 500,000 to UAH 1 million.

The Fund currently cooperates with three banks - ProCreditBank, Ukrgasbank and Oschadbank. Negotiations with 11 other banks are ongoing to expand the partnership and increase the availability of financial services for small agricultural producers.

In order to receive the Fund's guarantees, farmers need to apply to a bank that cooperates with the Fund and apply for a loan. After analysing the package of documents, the bank will provide an answer on the loan amount. In case of a positive answer, the borrower can apply for a guarantee from the Fund in the amount of 50% of the loan amount.

To inform farmers about the Fund's loan guarantees, a campaign is underway in the regions for agricultural producers. Farmers are being introduced with the Fund's instruments and trained on how to apply for loans.

The information campaign is supported by the International Finance Corporation (IFC), the World Bank and the Ministry of Agrarian Policy.

Background Information.

The Fund's activities are aimed at supporting micro, small and medium-sized farmers who cultivate land of up to 500 hectares. Borrowers can receive investment loans for up to 7 years, loans for land purchase for up to 10 years, and working capital for up to 3 years with a maximum loan amount per borrower of UAH 30 million. To access the Fund's guarantees, a farmer must be registered in the State Agrarian Register.