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Loans to farmers for 2022 sowing campaign amid war reach UAH 20 bln – Agrarian Ministry

KYIV. May 6 (Interfax-Ukraine) – Ukrainian banking Institutions for the period from mid-March to May 5 provided loans to farmers under the state program to support the sowing campaign in 2022 for a total of UAH 19.82 billion, including loans and portfolio guarantees for the week of April 28-May 5 for UAH 4.87 billion.

The relevant data on the financing of the sowing campaign in the conditions of the Russian military invasion of Ukraine were published on the website of the Ministry of Agrarian Policy and Food of Ukraine on Friday.

"Today, banks are trying to simplify the conditions for farmers in the process of obtaining loans. Therefore, many banks provide loans, putting forward one key requirement: profitable activity for at least one of the last two reporting years for those who have been on the market for a long time, and the availability of a business plan for newly created farms," Mykola Solsky, the head of the department, said.

It is specified that 80% (UAH 13.43 billion) of loans provided were portfolio guarantees, while a total of 7,200 agricultural producers received access to financing (2,170 in the last week).

Most of the loans for the sowing campaign were attracted by the agrarians of Kirovohrad region – UAH 2.57 billion, Vinnytsia – UAH 2.18 billion, Kyiv region – UAH 1.91 billion, Dnipropetrovsk – UAH 1.72 billion, Odesa – UAH 1.64 billion, Poltava – UAH 1.42 billion.

According to the ministry, loans up to UAH 60 million under this program are issued at 0% per annum (under the Affordable Loans 5-7-9% state financial support program). The term of such lending is up to six months, and after its completion, the interest rate for borrowers will be 5% per annum. Agrarians falling under the definition of an agricultural producer can use the loan.

The agency recalled that the government program to support the sowing campaign is being implemented by the Cabinet of Ministers, the Ministry of Agrarian Policy, the Ministry of Finance, the Ministry of Economy, the National Bank and the banking sector.