On July 14, the Cabinet of Ministers of Ukraine adopted the Resolution “On some issues of providing state guarantees on a portfolio basis”.

The resolution provides for the possibility of providing state guarantees under credit support for the purchase of agricultural land, which allows to provide support to small farmers (up to 500 hectares) as part of the implementation of land reform

In addition, the implementation of the document makes it possible to determine the mechanisms for providing state guarantees on a portfolio basis, as well as to establish requirements for the selection of banks that will have the right to receive such guarantees. The requirements for borrowers and obligations for which creditor banks can receive security in the form of state guarantees are also approved.

Such guarantees will be provided within the limits of the specified amounts for the corresponding budget period on the basis of the decisions of the Cabinet of Ministers. The loan will be granted for a period of up to 10 years, and guarantees from the state allow to significantly reduce the interest rate on the loan provided by the bank. 

In turn, JSC “Ukreximbank” is determined by the agent of the guarantor, whose functions, in particular, include checking the correctness of documents and calculations received from creditor banks.

Source: Ministry of Finance of Ukraine