Ukrainian Farmers Advocate for Higher Credit Limits and Lower Interest Rates
Date: 2023-10-21 Author: Dima Zakharov Categories: ECONOMY
Ukrainian farmers are advocating for significant changes to the "Affordable Loans 5-7-9%" program, with a goal of fostering growth in the agricultural sector. They are calling for an increase in the credit limits available, from the current UAH 90 million to a range of UAH 150-200 million. Furthermore, they are seeking a reduction in the interest rates on loans intended to replenish working capital. The farmers argue that these modifications will not only benefit them but also stimulate economic value across various agricultural industries.
At present, the existing credit limits of UAH 90 million are considered inadequate, particularly for sectors beyond crop farming. The farmers are also expressing their disapproval of the government's recent decision to raise the annual interest rate for working capital financing to 13%. They are urging a return to the previous 5% rate.
In a significant move, the Cabinet of Ministers of Ukraine, during its meeting on September 15, 2023, implemented adjustments to the "Affordable Loans 5-7-9%" program. These changes were aimed at simplifying access to bank credit, especially for micro and small businesses. The government, however, established a 13% annual interest rate for working capital financing, with an exception for businesses operating in high-risk military zones.
In response to the demands of Ukrainian farmers, the program's credit limit was elevated to UAH 150 million, catering to businesses in high-risk military zones, including occupied territories. Processing enterprises and those involved in energy modernization will also benefit from this increased limit. These adjustments reflect the government's commitment to supporting various sectors of the economy, with a particular focus on small and medium-sized enterprises.
At present, the existing credit limits of UAH 90 million are considered inadequate, particularly for sectors beyond crop farming. The farmers are also expressing their disapproval of the government's recent decision to raise the annual interest rate for working capital financing to 13%. They are urging a return to the previous 5% rate.
In a significant move, the Cabinet of Ministers of Ukraine, during its meeting on September 15, 2023, implemented adjustments to the "Affordable Loans 5-7-9%" program. These changes were aimed at simplifying access to bank credit, especially for micro and small businesses. The government, however, established a 13% annual interest rate for working capital financing, with an exception for businesses operating in high-risk military zones.
In response to the demands of Ukrainian farmers, the program's credit limit was elevated to UAH 150 million, catering to businesses in high-risk military zones, including occupied territories. Processing enterprises and those involved in energy modernization will also benefit from this increased limit. These adjustments reflect the government's commitment to supporting various sectors of the economy, with a particular focus on small and medium-sized enterprises.
