Photo from UNIAN
Ukraine's Ministry of Agrarian Policy and Food is holding intensive debates with the Ministry of Finance and the country’s commercial banks for the implementation of a joint project with the European Investment Bank (EIB) on financing Ukrainian small and medium-scale farmers worth EUR 800 million, the ministry press service reports with reference to Ukrainian Agrarian Minister Taras Kutovyi.
"The loan from the EIB is to become a real business development support tool especially for small and medium-sized producers. Under the project, EUR 400 million from the Ukrainian banks, participating in the project, shall be added to the initial EIB's amount of EUR 400 million. Therefore, it is necessary to establish clear terms for the project to operate successfully. So, we are now holding intensive negotiations, both with Ukraine's Finance Ministry and Ukreximbank, to speed up its implementation," the press service quoted Taras Kutovyi as saying.
The loan is expected to have a positive impact on Ukrainian business climate in the agricultural sector; it will focus on creating new jobs and enhancing investment activities. In addition, these funds will enable Ukrainian farmers to boost their exports.
As reported, the loan will be aimed primarily to support small and medium-sized farms, which will receive at least 70% of the total sum. The remaining 30% will be directed to operators of the public sector: research stations, laboratories, monitoring and control institutions.
Read alsoCabinet approves EIB project worth EUR 400 mln to support small and medium-sized businessesHowever, the ministry has not specified the date of the project launch.
"Now we have to finalize the technical details of the project with all of its members, for the loan to start working. As soon as the final agreements are reached, we will officially launch this important project," the press service quoted Deputy Agrarian Minister on European Integration Olha Trofimtseva as saying.
Read alsoUkraine boosts agriexportsAs UNIAN reported earlier, at the end of 2015 Ukraine attracted a 12-year loan worth EUR 400 million from the EIB, which will be used to implement projects in the field of agriculture and fisheries. In August, President of Ukraine Petro Poroshenko signed the law on loan ratification.
According to Agrarian Policy Ministry, the loan is designed for 12 years with low interest rates and a four-year grace period. The EIB funds can cover up to 50% of project costs. The remaining 50% of the costs will be provided at the expense of own assets of participating banks or agribusinesses. Thus, projects in the agricultural sector under the program can accumulate about EUR 800 million.