The Ministry of Agrarian Policy and Food of Ukraine initiated the allocation of UAH 3.39 billion of portfolio guarantees to four state-owned banks for lending to the processing industry of the Ukrainian agro-industrial complex.
As reported on the website of the agency on Wednesday, this measure will stimulate the processing of agricultural raw materials within the country, large reserves of which are difficult to export in the context of a halt in Ukrainian agricultural exports due to the blockade of its key seaports by Russian warships.
“Given that our seaports are blocked and we cannot export our grain in the required quantity, we will focus on the processing industry. As a result, enterprises operating in this area, thanks to portfolio guarantees, will be able to buy a certain stock of their products from agricultural producers , and the latter, in turn, will be able to repay part of the body of the loan,” Bagrat Akhidzhanov, director of the financial and economic department, quotes the Ministry of Agrarian Policy.
According to him, lending to agricultural processing will provide the maximum possible financial resource to the entire sphere of the Ukrainian agro-industrial complex.
In addition, it is specified that the ministry has already developed a plan for further financing of farmers in June-August.
“The Ministry of Agrarian Policy has a number of developments in lending to the agricultural products processing industry. Yes, we have already initiated changes to Decree No. 723 to expand the list of those who can receive loans under state guarantees by including processing enterprises in this list,” the statement reads. message of the words of First Deputy Minister Taras Vysotsky.
As reported with reference to the Minister of Agrarian Policy Mykola Solsky, the main factors for the development of agricultural processing in Ukraine are the opening of European and world markets on an ongoing basis, as well as affordable financing for farmers.