The Fund’s activities will allow farmers to be financed in the amount of UAH 24 billion, in particular, they will be able to buy agricultural land, machinery, and equipment for agricultural production with credit funds. The Minister of Agrarian Policy and Food of Ukraine, Roman Leshchenko, told about it. 

According to the minister, the fund should be fully operational by the end of summer 2022. 

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. Micro, small and medium-sized agricultural enterprises with the main type of activity in the form of production of agricultural products and owning up to 500 hectares of land will be able to use this right.

In addition, the Law establishes certain restrictions. In particular, the manufacturer cannot exercise such a right, even when he meets the criteria established by the Law, if:

• its participant or ultimate beneficiary is simultaneously a participant or ultimate beneficiary of other Ukrainian legal entities in agriculture;

• persons related to the producer own land, the area of which, together with the producer’s area, exceeds 500 hectares.

As the Minister explained, the Fund will offer portfolio guarantees that banks will use as part of the main collateral. These guarantees will be provided only for loans provided by financial institutions that have signed a cooperation agreement with the Fund and meet the eligibility criteria approved by the Fund’s Board.

The National Bank of Ukraine must settle issues related to the Fund’s activities by August 24, 2022.  Taking this into account, the Fund will start its activities on July 1, 2022.

Source: www.minagro.gov.ua