Ukrainian agricultural producers in 2022 attracted 43.65 thousand loans totaling 95.47 billion UAH under the program “Affordable credits 5-7-9”, according to the website of the Ministry of Agrarian Policy and Food of Ukraine on Monday.
It says that from the middle of March to May 31, 2022 a special program of concessional lending for the sowing season, under which farmers could borrow up to 60 million hryvnia at 0% per annum, and the state guaranteed 80% of funding. During the period of its operation the agrarian entrepreneurs received 24,72 billion UAH of credits. From June 1, 2022, the usual program “5-7-9” was applied for loans to agricultural sector.
The leaders in terms of credit amounts during this period were the Kiev region – 15,5 billion UAH, Vinnitsa region – 10,2 billion UAH, Kirovograd region – 8,6 billion UAH, Dnepropetrovsk region – 6,8 billion UAH and Odessa region – 6 billion UAH.
PrivatBank, Raiffeisen Bank, Ukrgasbank, Oschadbank, Ukreximbank, Credit Agricole and PUMB granted the most loans to agrarians.
The agency also recalled that the Ukrainian government has decided to provide financial support to micro, small and medium enterprises to restore partially or completely destroyed as a result of military operations of production facilities. Agribusinesses can also count on such support.
Besides, banks credit business for energy supply: purchase and installation of equipment ensuring uninterrupted work of business energy systems. Lending for such investments is made at an interest rate of 0% per annum.
As of September 27, Ukrainian agricultural producers sowed the main winter crops on an area of 709 thousand hectares (15% of the forecast of 4.56 million hectares), 298 thousand hectares were sown over the past week on September 20-27, according to the website of the Ministry of Agrarian politics and food on Tuesday.
According to the agency, 16% of the planned area, or 622 thousand hectares (+258 thousand hectares for the week of September 20-27), barley – 65 thousand hectares (+33 thousand hectares, 10% of the area), rye – 27 thousand hectares (+11.7 thousand hectares, 31% of the area).
At the same time, it is specified that the most intensive sowing of winter grains is carried out in the Chernihiv region, where 33.1 thousand hectares, or 37% of the forecast, are sown.
In addition, the sowing of winter rapeseed has been fully completed in Ukraine, the final area under this crop amounted to 961 thousand hectares.
Thus, by September 27 in Ukraine, a total of 1.67 million hectares were sown with winter crops, or 18.8% of the last year’s figure. In 2021, Ukraine allocated 8.87 million hectares for winter crops, including 6.66 million hectares for wheat, 1.02 million hectares for barley, 160.6 thousand hectares for rye, and 1.03 million hectares for rapeseed.
As of September 20, Ukrainian agricultural producers sowed the main winter crops on an area of 411 thousand hectares (9% of the forecast of 4.56 million hectares), 0.25 million hectares were sown over the past week, according to the website of the Ministry of Agrarian Policy and Food on Tuesday.
In particular, wheat was sown on 9% of the planned area, or 364 thousand hectares (+207 thousand hectares for the week of September 13-20), barley – 32 thousand hectares (+25 thousand hectares, 5% of the area), rye – 15.3 thousand hectares (+10 thousand hectares, 18% of the area).
According to the ministry, the most intensive sowing of winter grains is carried out in the Ternopil region, where 29.2 thousand hectares have already been sown, or 20% of the forecast.
In addition, agrarians from 13 regions of Ukraine have fully completed the sowing of winter rapeseed, by September 20 it was sown on 98% of the planned areas – 948 thousand hectares (+107 thousand hectares per week).
As reported, in 2021, Ukraine allocated 8.87 million hectares for winter crops, including 6.66 million hectares for wheat, 1.02 million hectares for barley, 160.6 thousand hectares for rye, and 1.03 for rapeseed. million ha.
State-controlled PrivatBank (Kyiv) issued UAH 6 billion in loans to 2,300 agricultural producers for the sowing campaign, the bank’s press service reported on Saturday.
“Ukrainian agricultural enterprises and farmers have already received UAH 6 billion of preferential loans for sowing from PrivatBank. Funding for spring work has been provided to 2,300 farms under the state program of preferential lending to agricultural producers,” the report says.
As reported, PrivatBank began issuing agricultural loans under the state support program on March 24. The program provides loans in the amount of up to UAH 5 million without collateral and insurance, as well as interest rate compensation, due to which customers pay 0% per annum with a one-time commission payment of up to 1% of the loan amount.
In order to receive a loan in the amount of more than UAH 5 million, the agricultural producer must additionally pledge agricultural machinery, which will provide at least 20% of the loan amount.
According to the statistics of the National Bank of Ukraine, as of January 1, 2022, PrivatBank ranked first in terms of total assets (UAH 582.85 billion) among 71 banks operating in the country.
