Ukraine Will Create a Loan Guarantee Fund for Agricultural Companies

The Government of Ukraine has decided to establish a Fund for guaranteeing loans to agricultural companies. The authorized capital of the organization will amount to UAH 200 million. This became known after the Cabinet meeting. Earlier, the head of the Ministry of Agrarian Policy Roman Leshchenko said that organizations that cultivate sown areas up to 500 hectares will receive state support to attract funding.

This fund will provide partial loan guarantees, which will make it easier for companies to raise funds. The work of the fund will be focused on small and medium-sized businesses. The volume of state guarantees will be up to 50% of the principal amount. Guarantees will apply to contracts whose duration does not exceed 10 years.

Participants of the Loan Guarantee Fund can be both government organizations and private businesses, including international companies. It will be granted the status of a financial institution, and a license to conduct financial activities will also be obtained.