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The move would reduce the financial burden on agricultural enterprises.
The Cabinet of Ministers of Ukraine has expanded the list of entrepreneurs engaged in the agricultural sector who are offered to receive compensation for interest on loans under the state support program.
The relevant resolution was adopted at a government meeting on May 13.
According to the explanatory note to the resolution, any business entities in the agricultural sector can participate in the loan compensation program, which was previously available only to individuals and legal entities involved in livestock farming or enterprises with revenue of up to UAH 20 million (US$749,344).
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"The government realizes that in conditions of the coronavirus crisis, Ukrainian farmers need additional financial assistance, in particular, for spring field works. At today's meeting, the Cabinet of Ministers expanded the segment of entrepreneurs in the agricultural sector who will be able to receive partial compensation of interest rate on loans raised," Ukrainian Prime Minister Denys Shmyhal said on Telegram on May 13.
The official noted that the move would reduce the financial burden on agricultural companies, which would be able to bring down the price of their products by reducing costs.
Shmyhal added that UAH 1.2 billion (US$45 million) in budget funds was provided to this end.
As UNIAN reported earlier, the government has fully preserved the amount of state support (UAH 4 billion/US$149.9 million) to farmers in 2020 after changes required to tackle the coronavirus spread in Ukraine had been made to the national budget.
The funds include UAH 1.2 billion for the loan compensation program, UAH 1 billion (US$37.5 million) for partial compensation of the price of agricultural machinery and equipment, UAH 1 billion for supporting livestock, and UAH 400 million (US$15 million) for gardening and farming each.