Agribusiness Financing: UKRSIBBANK signed a memorandum with the Ministry of Economy
UKRSIBBANK BNP Paribas Group has signed a Memorandum with the Ministry for the Development of Economy, Trade and Agriculture of Ukraine for providing state support to farmers.
From now on, UKRSIBBANK customers – SMEs and corporate customers – agribusiness entities – legal entities of any legal form and ownership, as well as individual entrepreneurs – can receive compensation for agricultural loans through the «Financial support for agricultural producers» State Program.
“Today, agribusiness is among the major drivers of the Ukrainian economy, so UKRSIBBANK actively supports the development of agriculture by investing in this area, which is key for the bank. We create favorable conditions for the development of agricultural enterprises and companies, we cooperate with farmers, processors and traders of agricultural products. We certainly cooperate with the Ministry of Economy to ensure that farmers receive state subsidies”, said Kostyantyn Lezhnin, Deputy Chairman for Retail Banking at UKRSIBBANK BNP Paribas Group.
The compensation will amount to 1.5 of the National Bank’s discount rate applicable on the date of interest accrual, but shall not exceed the amount set forth in loan agreements, reduced
by 5 p.p.
It should be noted that the compensation ceiling will be monitored by the Ministry of Economy.
No compensation is provided to Borrowers under concluded loan agreements where the interest is made cheaper by using the funds intended for other state and regional programs.
Compensation is available for Borrowers who applied for and received the following UAH loans in the current year:
- Short-term working capital loans;
- Mid-term working capital loans, loans to purchase agricultural machinery and equipment, to pay the costs involving construction and reconstruction of agricultural production facilities, as well as agri-reprocessing;
- Long-term loans taken to purchase agricultural machinery and equipment for agri-production and reprocessing, as well as loans for construction and reconstruction of production facilities.
Contact your manager for more information.