Agriculture Ministry of Ukraine Expects Credit Rates For Small And Medium-Sized Agricultural Enterprises To Fall When Land Bank Begins Operation


The Ministry of Agrarian Policy and Food expects the interest rates on loans to small and medium-sized agricultural enterprises to fall with the beginning of operation of the State Land Bank, the ministry announced in a statement.

"With the beginning of operation of the Land Bank, farmers will be able to obtain loans at rates that are 10-15% lower than commercial banks are presently offering. The primary beneficiaries of this will be farmers and small and medium-sized agricultural enterprises," the statement said.

According to the ministry, the average interest rates at which loans were obtained in Ukraine in 2012 were 22-24% per annum.

According to Bahrat Akhidzhanov, the director of the department of financial and credit policies and accounting, the operations of the Land Bank will be more effective if they focus on lending to certain sectors of agriculture, such as dairy cattle.

As Ukrainian News earlier reported, the Parliament re-created the State Land Bank on September 6, 2012, by adopting a new version of the draft law No. 10043.

President Viktor Yanukovych appointed five members of the supervisory board of the State Land Bank on March 21.


Ukrainian News Agency

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