KYIV. Jan 6 (Interfax-Ukraine) – The European Union (EU) jointly with the European Bank for Reconstruction and Development (EBRD) would provide a $5 million loan to a privately owned diversified agricultural producer Kischenzi LLC (Cherkasy region).
The EBRD said in a press release on Wednesday that the funds are provided under the EU-EBRD Deep and Comprehensive Free Trade Area (DCFTA) small and medium sized businesses (SME) Direct Support Facility.
The loan will be covered by a first loss guarantee from the EU grant under the above the facility. The proceeds of the loan will be used to upgrade its fleet of combine harvesters and to acquire supplementary agricultural equipment like cultivators.
“The project will help Kischenzi strengthen its export potential and implement modern state-of-the-art farming technics and standards thus creating a successful benchmark for the industry in Ukraine,” the bank said.
The Facility being implemented by the EBRD and the EU supports increase of SMEs’ competitiveness, ease their access to finance, helps them with new trade opportunities and compliance with new food safety, technical and quality standards, as well as with environmental protection measures.
Kischenzi LLC operates a variety of businesses ranging from grains and vegetables growing to dairy and pig farming. Around 60% of its output is successfully exported to the European Union and other markets.
