The Cabinet of Ministers has approved a Resolution updating the Procedure for using the funds provided in the state budget for financial support of measures in the agro-industrial complex by reducing the cost of loans.

"In 2021, it is planned to direct 1.2 billion hryvnias to reduce the cost of loans. This is one of the most successful programs to support farmers, which provides access to cheap credit and helps raise funds in the agricultural sector. This year, more than 4.4 thousand agricultural producers will be able to use the program and receive compensation," commented the Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko.

The draft resolution proposes the following:

1. determine a transparent procedure for selecting applicants for getting support;

2. clarify the directions of use of credit funds:

- an opportunity is provided to receive compensation under short- and medium-term loans to replenish working capital (agricultural producers who have suffered from weather conditions and to whom banks have restructured loans, will be able to receive partial compensation for interest on loans);

- medium- and long-term loans raised for the purchase of fixed assets of agricultural production, the expenses associated with the construction and reconstruction of agricultural production facilities, as well as the processing of agricultural products.

3. determine the deadlines for submission of applications by entities for compensation and registers of compensation payments to borrowers, which are submitted to the Ministry of Economic Development, Trade and Agriculture by authorized banks (annually until November 1).

Thus, the maximum amount of compensation to borrowers engaged in animal husbandry will be UAH 15 million, to other borrowers - UAH 5 million.