Crediting of Ukraine`s agro-industrial complex actively increases
In spite of high risks of the branch
In spite of high risks of the branch crediting by Ukrainian banks of agro-industrial complex of Ukraine actively increases, informed Director of Financial-crediting and tax policy Department, Grigoriy Zub, during the seminar "New technologies of agro-industrial complex financing" on March, 15, according to AgriMarket.
"According to National Bank of Ukraine data, volumes of credits obtained by agricultural and processing enterprises increased from 400 mln. UAH in 1999 to 24.3 bln. UAH in 2006, i.e. in more than 60 times", he noticed.
Head of Department also informed that following the results of 2006 agrarians obtained 12.8 bln. UAH credit resources, up 22% from 2005. At that number of enterprises used credits increased by 23% and counts 13.400. According to Mr. Zub, an important role in this plays state support of agrarians` crediting. He called high credit rates, availability of additional "latent" expenses of borrower, collateral overvalue as restrained factors
Banks` representatives attending the seminar also noticed their interest in agrarian industry. Thus, specialists of "Raiffeisen Bank Aval" informed that about a third of all bank granted credits were directed to agro-industrial complex of Ukraine. It totals 24% from the market of agro-industrial crediting. "Raiffeisen Bank" intends to keep its positions on this market. Also, availability of this industry was noticed by bank "Nadra" and "Ukreximbank".
Grigoriy Zub reminded that 667 mln. UAH is presumed in State budget for 2007 for reduction of interest rates for agrarians by short- and middle-term credits. It will let to obtain credits and maintain transitional long-term credits of 2004-05 for the sum of more than 11 bln. UAH: 4 bln. UAH - short-term (till 12 months), 3 bln. UAH - middle-term (12-36 months) and 4 bln. UAH - transitional.