Bank Credit Dnipro financed agribusiness for UAH 200+ million in a month

Bank Credit Dnipro provided agricultural enterprises with financing in the amount of UAH 215.8 million under the updated terms of the “Available Credits 5−7−9%” program, which came into effect on March 14, 2023. The main recipients of loans were farms in the Kirovohrad, Poltava, and Odesa regions.

Photo: Bank Credit Dnipro 0

“Despite the full-scale war, the business climate in Ukraine is gradually recovering. This, in particular, is facilitated by the factor of financial support and preferential programs from the Government, which allows entrepreneurs to continue their activities no matter what, said Tatiana Poplavskaya, Deputy Chairman of the Board of Credit Dnipro Bank. — In 2023, there is the most difficult sowing campaign: loss of equipment, mining of land, insufficient labor resources, problems with the “grain corridor” and logistics, and the like. But the lack of working capital for the 2023/2024 agricultural season is no less a powerful challenge for the majority of Ukrainian farmers,” Tatiana added.

Bank Credit Dnipro provides credit support to farms not only in safe regions, but also to borrowers in occupied territories. Complex multi-stage restructuring of the current loan portfolio was carried out in the Kupyan, Zolochiv, and Chuguev districts of the Kharkiv region, as well as in the Kherson and Nikolaev regions. The bank carried out the transfer of loan repayment terms to the terms agreed with the business owners for the opportunity to carry out seeding based on the strategy and terms of business resumption while preserving the current terms of credit contracts.

As a result, 89% of the loan portfolio of the de-occupied part of the Kharkiv region, 54% of the Kherson region, and 100% of the Nikolaev region were restructured on mutually beneficial terms. Moreover, despite the fact that all borrowers in the Zaporozhye region are occupied, the Bank settled the issue of three loan agreements — that’s about 10% of the loan portfolio.

As a reminder, in March 2023, the government made a decision to optimize the state programs “Affordable loans 5-7-9%” and “Affordable financial leasing 5-7-9%” under martial law. According to the Resolution “On Amendments to Some Resolutions of the Cabinet of Ministers of Ukraine on the Provision of Financial State Support to Business Entities”, the provision of state financial support to businesses, in particular, to agricultural producers who received loans for the sowing campaign in 2022, has been continued. In particular, the deadline for receiving financial support for the sowing campaign has been extended, including with the possibility of extending loans issued for sowing works, provided that representatives of large and medium-sized agribusiness repay up to 25% of the received loan and the possibility of providing state guarantees to ensure partial fulfillment of debt obligations for such loans

Food security of Ukraine and the world is the key goal of agricultural producers of Ukraine.

Source: Ministry of Finance

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