Establishment of the Agricultural Credit Guarantee Fund

by Olha Povaliaieva
Friday, February 18, 2022
Establishment of the Agricultural Credit Guarantee Fund

The state will provide loan guarantees for small and medium-sized farmers

16 February, during a meeting of the Ukrainian government, was decided to provide financial assistance to agribusinesses. The total amount of the program for 2022 is about $354 million. It is noteworthy that more than $282.5 million in government guarantees have already been granted this year. But the government plans to expand the portfolio guarantee program even further. The policy has approved a document that will provide government guarantees to two more creditor banks. Banks will be able to provide loans for micro and small businesses with partial guarantees from the state.

"The government will establish a partial credit guarantee fund for agriculture. Portfolio guarantees have proved to be a reliable and effective incentive for micro-business, so a similar practice will be extended to representatives of the" rel="dofollow">agricultural sector," said the prime minister of Ukraine Denys Shmyhal at the meeting.

Support for small-scale agriculture will have an impact on the country’s economy. By establishing a partial loan guarantee fund, the state will be able to record new yields, create jobs, and export cereals.

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