Both medium-sized and small agricultural enterprises working in the fields of growing grain and oil crops, aquaculture can receive a loan of up to 50 million euros within the framework of the European Investment Bank project.
This was discussed on January 28, 2021, during a meeting between the head of the Lviv Regional State Administration, Maksym Kozytskyi, with the head of the Assembly of Agrarian Chambers of Ukraine, Ihor Vuytsyk, and the director of the Lviv Agrarian Advisory Service, Ivan Pankiv. Branch Deputy Head of the Regional State Administration Yury Buchko also took part in the meeting.
The European Investment Bank enables farmers to take advantage of more affordable loans than is available today. Ivan Pankiv and Ihor Vuytsyk talked about this in their speech. The volume of the loan portfolio for Ukraine within the framework of the project “Main credit for the agricultural industry” is EUR 400 million. Borrowers of funds can be legal entities registered in Ukraine, which are developing their business and need resources in order to improve technology, increase volumes and produce quality crops for sale on the Ukrainian and European markets. The order for credit funds by agricultural producers should amount to no more than 50 million euros, of which the maximum amount of financing with the funds of the European Investment Bank is up to 25 million euros.
Credit funds can be received either by one agricultural firm – the borrower, or by several working in the same direction and united. Loans will be granted in euros. The European Investment Bank directs , through the mechanism of financial mediation, namely by providing credit resources to the Ministry of Finance of Ukraine, which, in turn, transfers credit funds to selected participating banks for further financing by the banks of credit projects of their own clients: (so far, 2 banks have been selected: Bank “Lviv” and JSC Bank “Alyans”. This credit program offers funds at interest rates that are lower than in Ukraine.
In order to take part in the project, it is necessary to contact the Lviv Agrarian Chamber or the Lviv Agrarian Advisory Service to prepare the justifications for the loan and submit an application to the Central Office of the project in Kyiv.
Agrarians will be able to receive credit funds on their accounts within two to three months from the moment of application submission. The loan can be issued with a repayment term of 10 years, and what is important, the body of the loan can not be repaid during the first two years.
In the framework of the meeting, the parties agreed to organize a meeting of all agricultural producers who want to increase the added value of products in the areas of growing grain and oil crops, as well as in the field of aquaculture, and to inform in detail about the conditions of participation with the support of the European Investment Bank project “Main Credit for the Agricultural Industry-Ukraine”.
The meeting also raised the issue of restoring the institution of the representatives of the Lviv Agrarian Chamber in each of the 73 united territorial communities – this initiative will be supported by the regional government.
Providing practical assistance to peasants (owners of land shares) should be aimed at raising the awareness of rural territorial communities about land reform. This was emphasized by Ihor Vuytsyk, because with the adoption of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding the Transfer of Agricultural Land” not only are the deadlines for registering the ownership of an unclaimed land share (share) on land until January 1, 2025, but also the time frame for the purchase of land plots that belonged to citizens with the right of permanent use for farming is established. Therefore, the provision of professional consultations and advice on issues of legal assistance in drawing up technical documentation, state registration of ownership rights and rem rights to immovable property, which will provide landowners with the opportunity to independently and more effectively manage their land, receive a fair profit from it by creating a family farm, is extremely important.
An important source of coverage and a carrier of information on the implementation of state agrarian policy in our region is the newsletter “Visnyk AgroForum” and a printed newspaper, which require constant financial support from the authorities. The publication is distributed in electronic format free of charge, and is also publicly available on the website of the Chamber and the Department of Agricultural Development of the LODA.
Chairman of the Assembly of Agrarian Chambers of Ukraine
Ihor Vuytsyk