Ukrainian Agrarians Secure Nearly 70 Billion in Credits
Date: 2023-12-08 Author: Dima Zakharov Categories: ECONOMY
Agrarian Credit Boom
Ukrainian agrarians have marked a staggering milestone in 2023, procuring a substantial total of 69.6 billion hryvnias in bank credits for bolstering their farmsteads. As of the year's commencement, a noteworthy count of 12,900 Ukrainian agricultural enterprises have benefited from this influx of financial support.
Regional Disbursements
The distribution of these funds showcases regional disparities in credit procurement. Kiev's province takes the lead, securing 11.6 billion hryvnias for 951 enterprises, followed by Dnipropetrovsk with 6.4 billion hryvnias for 830 establishments, and Vinnytsia with 6.1 billion hryvnias assisting 1458 enterprises. Cherkasy sees 508 entities acquiring 5.4 billion hryvnias, while Kirovohrad boasts 1705 enterprises with 4.9 billion hryvnias. Odessa, with 1114 farms, obtained 4.5 billion hryvnias in credit facilities.
State Program Impact
A substantial portion, 39.4 billion hryvnias, has been disbursed among 10,000 enterprises through the state-backed initiative "Accessible credits 5-7-9" by December 8th.
Program Detailing
The "Accessible credits 5-7-9%" program aims to streamline access to banking loans for micro and small businesses, particularly in the agricultural sector. This initiative facilitates credit acquisition up to 90 million hryvnias at an annual interest rate ranging between 5% to 9%, contingent upon the credit category and business entity.
Program Amendments
The Cabinet of Ministers of Ukraine, in its September 15, 2023 meeting, introduced alterations to the "Accessible credits 5-7-9%" program. Notably, a 13% annual interest rate was set for financing working capital, excluding enterprises operating in high-risk military zones. Additionally, the program's limit was increased to 150 million hryvnias for businesses in high-risk military zones, areas under de-occupation, processing enterprises, and those focusing on energy modernization.
