The Fund for Partial Guarantee of Loans in Agriculture will provide loan guarantees for primary producers of agricultural products cultivating no more than 500 hectares of land.

The Minister of Agrarian Policy and Food of Ukraine Roman Leshchenko announced this in his telegram channel.

According to him, guarantees from the Fund will be provided for up to 10 years in the amount of up to 50% of the outstanding amount of the principal debt to the financial institution.

“The lack of a long credit history for many years deprived small agribusinesses of the opportunity to invest in development. Interest on loans for them was on average 5–7% higher than for large farmers. Therefore, small agricultural producers preferred "short" loans to cover their current needs,” said Roman Leshchenko.

He added that the launch of the Partial Loan Guarantee Fund will significantly reduce the risks of lending to small farmers for banks. Consequently, interest rates should become more affordable and loan terms longer.

Recall that the government agreed on the creation of the Fund for Partial Guarantee of Loans in Agro. Earlier, the Verkhovna Rada of Ukraine adopted in the second reading and in general the Law “On the Fund for Partial Guarantee of Loans in Agriculture”.