The fund of partial guarantee of loans in agriculture will allow to finance farmers in the amount of UAH 24 billion.
The fund will offer portfolio guarantees that banks will use as part of the principal collateral. This was reported by the press service of the Ministry of Agrarian Policy of Ukraine.
"The fund will provide guarantees of up to 50% of the outstanding amount of the principal debt and guarantees for the term of the credit agreement, but not more than 10 years. The main condition is that farmers must own and/or use no more than 500 hectares of land, and they must specialize in the primary production of agricultural products," the message says.
As noted by the Ministry of Agricultural Policy, the Fund will offer portfolio guarantees that banks will use as part of the principal collateral. These guarantees will be provided only for loans provided by financial institutions cooperating with the Fund.
According to the Minister of Agricultural Policy, the authorized capital of the Fund will be formed at the expense of the state budget and the help of international partners - a total of about 3 billion UAH. The activity of this fund will make it possible to finance farmers in the amount of UAH 24 billion.
In addition, as stated in the message, the EC has already confirmed the allocation of a grant in the amount of 50 million euros for the replenishment of the authorized capital of the Fund for the partial guarantee of loans in agriculture.
The draft budget for 2022 includes 8 billion hryvnias for financing the agricultural sector, while the budget for the current year includes 4 billion hryvnias.
