A Fund for Partial Loan Guarantee for Agricultural Companies Will Be Established in Ukraine

The Law on the Creation of the Partial Credit Guarantee Fund for Agricultural Producers entered into force. President of Ukraine Volodymyr Zelensky signed the document on November 19.

The law spelled out the legal status, as well as all the features of the functioning of the Fund. There is a list of criteria by which the Fund can provide guarantees. The list of entities that can receive guarantees from the fund has also been approved.

The head of the Ministry of Agrarian Policy and Food of Ukraine Roman Leshchenko said that the creation of the Fund will help make lending for small and medium-sized agricultural producers more affordable. You can get guarantees up to 50% of the outstanding debt, as well as guarantees for up to 10 years. Guarantees can be provided for agrarians and farmers who are engaged in the primary production of agricultural products and cultivate no more than 500 hectares of land.

The fund will provide banks with portfolio guarantees. Financial institutions will be able to use them as the main collateral. Guarantees will be provided only if the loan is obtained from a bank that has entered into a cooperation agreement with the Fund. The authorized capital will be formed at the expense of the state budget, as well as funding from international partners. In total, the Fund will be able to provide guarantees for agricultural companies in the amount of up to UAH 24 billion.